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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How are current U.S.-China economic tensions impacting Mexico’s export strategies and relationship with the U.S.?
**Interviewer**: Thank you for joining us today. With the ongoing tensions in economic relations between the U.S. and China, how do you see these dynamics influencing relationships with other countries, specifically Mexico?
**Alex Reed**: Thank you for having me. The minister’s remarks highlight a growing recognition of how intertwined U.S.-China relations are with the broader economic landscape. Tensions between the two superpowers are not just a bilateral issue; they significantly affect regional partners like Mexico. The U.S. is aware that its strategic competition with China will shape its economic policies not only toward China but also toward its neighbors.
**Interviewer**: You mentioned the impact on relationships with neighboring countries. Can you elaborate on how Mexico is positioning itself amid these tensions?
**Alex Reed**: Absolutely. The Mexican minister pointed out that the U.S. is Mexico’s main economic partner, and this relationship is crucial, especially as Mexico has become one of the leading exporters to the U.S. As the U.S. seeks to reduce its dependence on China, Mexican exports may see a boost, particularly in sectors where Mexico can fill the void left by China—like manufacturing and agriculture. This presents Mexico with both opportunities and challenges as it navigates its economic strategy to appeal to U.S. interests while managing its own national priorities.
**Interviewer**: Given these economic dynamics, what strategies do you believe Mexico could employ to mitigate potential conflicts arising from U.S.-China tensions?
**Alex Reed**: Mexico could enhance its diplomatic and trade relations with the U.S. by emphasizing its proximity and economic integration, especially under USMCA (United States-Mexico-Canada Agreement). By collaborating with the U.S. on supply chain resilience and investing in sectors that are critical for U.S. interests, like renewable energy and technology, Mexico can position itself as a key ally. Additionally, addressing concerns over labor standards and environmental policies will play a role in solidifying that partnership.
**Interviewer**: The minister has expressed a desire to mitigate the upcoming conflict between Washington and Beijing. What challenges do you think Mexico might encounter in this effort?
**Alex Reed**: One significant challenge is balancing the expectations of both the U.S. and China. Mexico must navigate its economic relationships carefully to avoid being caught in the middle. Additionally, there’s the issue of domestic pressures—ensuring that progress in relations with the U.S. does not alienate segments of the Mexican population that may be concerned about the implications of greater alignment with U.S. policies. Moreover, Mexico’s own economic interests must be prioritized even as it seeks to position itself strategically amid global tensions.
**Interviewer**: Thank you for your insights. It seems clear that this situation is complex and evolving.
**Alex Reed**: Yes, it certainly is. As we move forward, Mexico’s approach will be crucial not just for its own economy but also for the stability of the North American region in the context of U.S.-China relations. Thank you for having this important discussion.
