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 come 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
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What strategies does the Mexican government have in place to sustain its economic relationship with both the U.S. and China?
**Interview with Mexican Economy Minister: Navigating U.S.-China Economic Relations**
**Interviewer:** Thank you for joining us today, Minister. Your recent comments highlighted the growing tension in economic relations between the U.S. and China and its implications for your country. Can you elaborate on how this tension is shaping Mexico’s economic strategy?
**Minister:** Thank you for having me. Absolutely. The tension in economic relations between the U.S. and China is indeed a pivotal factor in our strategy. We recognize that the United States is our main economic partner, and as such, we are closely monitoring the situation. Our aim is to mitigate any potential conflict that may arise from the competition between these two major economies.
**Interviewer:** You mentioned that Mexico has become one of the main exporters to the United States. What specific opportunities do you see for Mexico in light of this U.S.-China dynamic?
**Minister:** Mexico is strategically positioned to benefit from the reallocation of supply chains and economic activities. As companies look for alternatives to mitigate risks associated with relying too heavily on China, we believe that Mexico can offer a viable option due to our proximity to the U.S. and our trade agreements. Our goal is to enhance our export capacities and attract more investment in sectors where we excel.
**Interviewer:** How does Mexico plan to balance its strong economic ties with the U.S. while managing relations with China?
**Minister:** It’s crucial for us to maintain a balanced approach. We will continue to foster our economic relationship with the U.S., ensuring that we are a reliable partner in trade and investment. At the same time, we recognize the importance of engaging with China, a significant player in the global economy. We will aim to navigate these relations carefully, promoting Mexico as a hub for trade that can complement both powers rather than being caught in their competition.
**Interviewer:** Lastly, what message do you have for Mexican businesses as they adapt to these changes in the global economic landscape?
**Minister:** I encourage Mexican businesses to remain proactive and innovative. This is a time for us to strengthen our capabilities, explore new markets, and diversify our exports. By doing so, we can not only benefit from U.S. demand but also buffer ourselves against global uncertainties. Together, we can turn challenges into opportunities.
**Interviewer:** Thank you, Minister, for sharing your insights on this important issue. We look forward to seeing how Mexico navigates this complex economic landscape.
**Minister:** Thank you for having me. It’s important for us to stay informed and engaged in these discussions.
