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 can Mexico leverage its geographic proximity to the U.S. in the context of rising tensions in U.S.-China relations to enhance its export opportunities?
**Interview with Economic Minister of Mexico on U.S.-China Relations and Mexico’s Position**
*Interviewer: Thank you for joining us today, Minister. There’s a lot of discussion about the tension in economic relations between the U.S. and China. You mentioned this tension will be central to U.S. strategy moving forward. Can you elaborate on how this impacts Mexico?*
**Minister:** Thank you for having me. Indeed, the dynamics between the U.S. and China are crucial, not only for those two countries but for us in Mexico as well. As tensions rise, it opens both challenges and opportunities for Mexican exporters. The U.S. remains our main economic partner, and we intend to navigate this landscape carefully.
*Interviewer: Can you discuss Mexico’s role as an exporter to the United States in the context of these tensions?*
**Minister:** Certainly. Mexico has positioned itself as one of the top exporters to the U.S., benefitting from a close geographical and economic relationship. As companies reassess their supply chains in response to tensions with China, we aim to attract more business opportunities. By mitigating conflict and enhancing cooperation, we hope to solidify our role as a reliable partner for the U.S. market.
*Interviewer: You mentioned mitigating conflict. What specific strategies does Mexico plan to employ to support this goal?*
**Minister:** Our strategy involves deepening diplomatic ties with the U.S., engaging in relevant trade agreements, and promoting our manufacturing capabilities. We believe that while competition between the U.S. and China intensifies, building a strong relationship with the U.S. is paramount for our economic growth.
*Interviewer: Given the current figures showing the U.S. economy significantly outpacing China’s — $25.5 trillion compared to China’s $18 trillion in 2022 — how should Mexico prepare for potential shifts in economic priorities?* [[1](https://www.nytimes.com/2023/07/07/business/economy/us-china-relationship-facts.html)]
**Minister:** The disparity in economic size indeed offers insights into potential shifts in global trade dynamics. Mexico must innovate and adapt; this involves investing in technology, improving workforce skills, and ensuring that our products meet the U.S. standards. We foresee the U.S. prioritizing supply chain security, and Mexico can play a pivotal role in that strategy.
*Interviewer: what message do you have for businesses in Mexico looking to take advantage of this situation?*
**Minister:** I encourage Mexican businesses to be proactive. They should seek partnerships, explore new markets in the U.S., and be flexible in adapting their practices to meet changing demands. The evolving landscape presents opportunities, and we are here to support our entrepreneurs in seizing them.
*Interviewer: Thank you, Minister, for your insightful perspectives on this important issue.*
**Minister:** Thank you for having me. It’s a complex but pivotal moment, and I’m optimistic about what lies ahead for Mexico and its partnership with the U.S.
