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 can Mexico employ to strengthen its economic relationship with the U.S. and mitigate the risks associated with tensions between the U.S. and China?
**Interview with Dr. Rosa Martinez, Economic Analyst and Former Diplomat**
**Editor:** Today, we have the pleasure of speaking with Dr. Rosa Martinez, an expert in international trade and economic relations, especially regarding the U.S.-Mexico-China dynamic. Dr. Martinez, thank you for joining us.
**Dr. Martinez:** Thank you for having me. It’s a pleasure to be here.
**Editor:** Recently, a Mexican minister highlighted that tensions in economic relations with China will be central to U.S. strategy moving forward. How do you interpret this statement?
**Dr. Martinez:** This reflects a deepening concern in U.S. policymaking about the implications of China’s economic strategies. The U.S. perceives China as a significant competitor—not just economically, but also politically and technologically. As the Mexican minister indicated, the U.S. recognizes that stability in its own economic partnerships is crucial, particularly with Mexico, which has increasingly become one of its top exporters.
**Editor:** That’s an interesting point. The minister also mentioned efforts to mitigate conflict between Washington and Beijing. What role do you think Mexico can play in this context?
**Dr. Martinez:** Mexico stands at a strategic crossroads. As a key player in North American trade, particularly with the USMCA agreement facilitating trade relations, Mexico could serve as a buffer or intermediary. By strengthening its economic ties with the U.S., Mexico might help ensure that the focus remains on collaboration rather than competition. Moreover, as some industries in the U.S. experience disruption in their supply chains due to tensions with China, Mexico could benefit by becoming a more critical supplier.
**Editor:** You mentioned supply chains. How do you think the shifting dynamics might affect Mexican exports to the U.S.?
**Dr. Martinez:** We’re already seeing an increase in Mexican exports. As companies look to diversify their supply chains to mitigate risks associated with reliance on Chinese production, Mexico’s nearshore capabilities make it an attractive alternative. This can result in more manufacturing jobs in Mexico and potentially strengthen the bilateral economic relationship significantly.
**Editor:** Given this context, what are some challenges Mexico might face as it navigates these waters?
**Dr. Martinez:** There are several challenges. Firstly, economic dependence on the U.S. comes with vulnerabilities—any economic downturn in the U.S. would directly impact Mexico. Additionally, Mexico must address its own domestic issues, such as labor conditions and regulatory frameworks, to ensure it can compete effectively. Lastly, navigating the geopolitical tensions without straining its relationship with either partner will require careful diplomacy.
**Editor:** Thank you, Dr. Martinez. It seems the upcoming years will be critical for not just U.S.-China relations but for Mexico’s role in that context.
**Dr. Martinez:** Absolutely. Mexico’s ability to leverage its position could dictate its future economic landscape and its influence in North America.
**Editor:** Thank you for your insights today, Dr. Martinez. It will be fascinating to see how these dynamics evolve.
**Dr. Martinez:** Thank you! I look forward to seeing how the situation unfolds.
