The minister added: “The tension in economic relations with China will occupy a central place in the US strategy.” “We are well aware that the United States is our main economic partner… We will try to some extent to mitigate the upcoming conflict and competition between Washington and Beijing.”
Speaking about the economic relations between the American side and his country, the Mexican minister pointed out that it has now become one of the main exporters to the United States, and expressed his confidence that by Trump’s second presidential term, Mexico will be in a better position to renegotiate the free trade agreement than it was during His first presidential term 2017-2021.
“The current starting point is much better than it was six years ago,” he said.
When Trump was still a presidential candidate for the Republican Party, he said that, if elected, he intended to increase tariffs on products coming from China and other countries.
It is noteworthy that the first period of Trump’s presidency witnessed “trade wars” between the United States and China. In practice, Trump’s successor, current President Joe Biden, has continued this economic confrontation: threats have been issued to increase tariffs on imports of Chinese steel, aluminum, and electric cars.
Earlier, calculations conducted by RIA Novosti confirmed that the main exporter of goods to the United States in the first eight months of 2024 was Mexico worth $335 billion, followed by China ($279 billion) and Canada ($275 billion). At the end of this year, Mexico will maintain its leadership in this area, with a supply volume of $496 billion. China comes in second place with a value of $431 billion.
In July, the White House announced that when importing from Mexico and in order to enter the US market duty-free under the US-Canada-Mexico Free Trade Agreement, stainless steel products as well as aluminum must be of Mexican origin, but if the metals used are sourced from outside Mexico A 25% customs duty and a 10% tax will be imposed on Mexican aluminum goods produced using raw materials from China, Russia, Belarus and Iran.
Source: Novosti
#Mexico #declares #readiness #calm #economic #relations #United #States #China
How is Mexico positioning itself to take advantage of potential shifts in supply chains caused by US-China tensions?
**Interview with Mexican Economic Minister: Navigating US-China Tensions**
*Editor: Today, we’re joined by the Mexican Economic Minister to discuss the implications of rising tensions between the United States and China and how they might affect Mexico’s economic strategy. Thank you for being here!*
**Minister:** Thank you for having me.
*Editor:* You mentioned that tensions in economic relations with China will play a significant role in the US strategy. How do you see these tensions influencing Mexico’s approach to trade with both countries?
**Minister:** It’s essential for us to recognize that the United States remains our main economic partner. The ongoing competition between Washington and Beijing presents both challenges and opportunities for Mexico. We aim to strengthen our position as a key exporter to the US while also cautiously navigating the complexities of US-China relations.
*Editor:* Can you elaborate on Mexico’s role as an exporter to the US?
**Minister:** Absolutely. Mexico has become one of the leading exporters to the United States across various sectors, including automotive, agriculture, and electronics. This close economic relationship gives us leverage. We hope to enhance this partnership, especially if tensions with China result in shifts in supply chains and trade policies.
*Editor:* You mentioned mitigating conflict. What strategies is Mexico considering to minimize any negative impact from the looming US-China competition?
**Minister:** Our strategy involves proactive engagement with both the US and China. We are working to ensure our trade agreements remain robust and flexible. Additionally, we’re exploring ways to draw more investment and trade that can benefit our economy while balancing the interests of our two significant partners.
*Editor:* That’s a prudent approach. Do you foresee any specific sectors that might benefit from this shift in relations?
**Minister:** Yes, sectors like technology, green energy, and manufacturing could see significant opportunities. If US companies look to reduce their dependence on China, Mexico can be a natural alternative due to our proximity, established trade frameworks, and workforce capabilities.
*Editor:* Thank you for your insights, Minister. It’s clear that Mexico’s strategic position could play a crucial role in this evolving narrative.
**Minister:** Thank you for having me. We’re committed to navigating these challenges while strengthening our economy.
