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 specific strategies is Mexico employing to enhance its position within the US supply chain amidst US-China tensions?
**Interview with Mexican Economic Minister on US-China Relations**
**Editor:** Thank you for joining us today, Minister. You recently mentioned the central role that economic relations with China will play in the US strategy. Can you elaborate on what you foresee in the upcoming dynamics between Washington and Beijing?
**Minister:** Thank you for having me. Yes, the tension between the US and China is palpable, and it indeed influences global economic strategies. As a neighboring country to the US, we are intimately aware of how this competition could impact our economy. Our goal is to navigate these waters strategically, promoting stability while safeguarding our interests.
**Editor:** You also noted that the United States is Mexico’s main economic partner. How has this relationship evolved, especially in light of increasing exports from Mexico to the US?
**Minister:** Our relationship with the US has grown significantly. In recent years, Mexico has become one of the top exporters to the US market. We are committed to enhancing this partnership by supplying essential goods and services, which will not only strengthen our economy but also provide the US with reliable alternatives amid any potential disruptions caused by US-China tensions.
**Editor:** Given the potential for conflict between Washington and Beijing, how does Mexico plan to mitigate the impacts on its economy?
**Minister:** We are actively strategizing to take advantage of the shifts in global trade. By positioning ourselves as a stable, trusted partner to the US, we aim to increase investment and support for our export sectors. It’s crucial for us to diversify our trade channels and ensure that we can provide solutions that benefit both countries without becoming overly reliant on any single market.
**Editor:** This sounds like a balancing act. What are your next steps to solidify Mexico’s role in the US supply chain?
**Minister:** Our immediate steps include fostering dialogue with US officials to better understand their needs, investing in infrastructure and logistics that enhance our trade capabilities, and supporting our industries to innovate and expand. By doing so, we intend to ensure that when US companies look for alternatives, Mexico is at the forefront of their minds.
**Editor:** Thank you, Minister, for sharing these insights on Mexico’s strategic approach to navigating the complex landscape of US-China relations. We look forward to seeing how these developments unfold.
**Minister:** Thank you for having me. It’s a crucial time for our economies, and I appreciate the opportunity to discuss how Mexico can play a pivotal role.
