Monday, April 7, 2025

USMCA free trade deal ‘is still standing’: Thursday’s mañanera recapped

President Claudia Sheinbaum acknowledged at the very beginning of her Thursday morning press conference that the United States government didn’t announce any “reciprocal tariffs” on imports from Mexico on Wednesday.

Mexico and Canada — which along with the United States are the signatories to the USMCA free trade pact — were among a very small group of countries that avoided reciprocal tariffs on their exports to the world’s largest economy.

United States President Donald Trump imposed tariffs of at least 10% on imports from almost all countries around the world, with reciprocal duties going as high as 49% in the case of Cambodia.

“Some of the world’s most heavily sanctioned countries — Russia, Belarus, Cuba and North Korea — avoided being singled out for special punitive treatment,” Reuters reported.

Sheinbaum: Mexico avoided additional tariffs due to ‘good relationship’ with US 

“I suppose you heard President Trump’s message yesterday about this new United States trade and tariff policy for the rest of the world?” Sheinbaum said at the start of her press conference.

“In Mexico’s case, there are no additional tariffs … and that is good for the country,” she said.

“Although some people don’t want to recognize it, it has to do with the good relationship we’ve built between the government of Mexico and the government of the United States that is based on respect — respect for our sovereignty, collaboration, coordination, but with respect for Mexico, Mexicans and national sovereignty,” Sheinbaum said.

“This has allowed Mexico to avoid additional tariffs,” she said.

“And it also has to do with the strength of our government. And as I always say, there are a lot of people in Mexico. That’s the strength of our country, it lies in them, in that there is no division between the people and the government,” Sheinbaum said.

Dialogue with US on auto and steel tariffs continues  

Sheinbaum acknowledged that Mexico’s automotive, steel and aluminum exports are subject to United States tariffs. So are goods that don’t meet USMCA rules.

The United States’ 25% tariff on vehicles manufactured outside the United States took effect on Thursday. Vehicles assembled in Mexico and Canada will face a lower tariff rate when exported under the USMCA as U.S. content in those vehicles will be exempt from the duty. U.S. tariffs on certain auto parts will take effect on May 3.

The United States’ 25% tariff on steel, aluminum and hundreds of products made from those metals took effect last month. It will apply to canned beer and empty aluminum cans starting Friday.

Sheinbaum highlighted that the auto, steel and aluminum tariffs apply to all countries, “not just Mexico and Canada.”

She noted that the automotive tariffs have special “characteristics” for vehicles exported from Mexico and Canada, and stressed that the North American auto industry is “very integrated.”

Sheinbaum said that her government is holding ongoing talks with its U.S. counterpart on the auto, steel and aluminum tariffs, indicating that she is hopeful Mexico could win a reprieve.

She noted that she would present the government’s plan to strengthen the Mexican economy, which she said “has to do with Plan México,” at midday on Thursday.

On Wednesday, Sheinbaum said she would present a “comprehensive program” to strengthen the Mexican economy that would go beyond responding to U.S. tariffs.

Ebrard: ‘We have preferential treatment’

Speaking after Sheinbaum, Economy Minister Marcelo Ebrard noted that the United States has 14 free trade agreements, and imposed “reciprocal tariffs” on all its free trade partners except Mexico and Canada.

“Today we have preferential treatment,” he said.

Economy Minister Ebrard stands in front of a world map labelled with the words "Trato preferential a Mexico"
Economy Minister Marcelo Ebrard, who has been at the forefront of Mexico’s trade negotiations with the United States, pointed out that with many more countries around the world now facing U.S. tariffs, Mexico is in a more competitive trade position. (Presidencia)

Ebrard said that the preferential treatment afforded to Mexico is the result of the president’s strategy in dealing with the United States government.

“It’s a great achievement. … Very recently, there wasn’t going to be any exception,” he said, referring to the imposition of reciprocal tariffs.

The USMCA ‘is still standing’ 

Ebrard asserted that the fact that Mexican products won’t be subject to reciprocal tariffs when shipped to the United States means that the USMCA “is still standing.”

“That’s a major achievement. We don’t take it for granted because in a new trade order based on tariffs, it’s very difficult for a free trade agreement to survive,” he said.

“In other words, if we hadn’t achieved this, your question would be: ‘What happened with the [trade] agreement?’ Right?” Ebrard said to reporters.

Female employees of a textile factory in Mexico. The women are at work, sitting in rows at tables with industrial sewing machines. They are wearing orange t-shirts and matching orange hats under which their hair is tucked.
Dodging U.S. tariffs means that millions of jobs in a wide swath of Mexican industries are no longer in jeopardy, Ebrard said Thursday. (Shutterstock)

The economy minister highlighted that a wide range of products can be exported tariff-free to the United States, including agricultural ones, electronic goods, chemicals, clothing, footwear and medical devices.

The industries that make products not subject to U.S. tariffs employ millions of people in Mexico, he said.

Mexico’s 40-day goal  

“Our goal in the next 40 days is to achieve the best conditions among all countries of the world for the [Mexican] auto industry,” Ebrard said.

“The same thing for steel and aluminum,” he added.

Ebrard and other Mexican officials will attempt to achieve those objectives through dialogue with U.S. officials, including Commerce Secretary Howard Lutnick.

“We’re going to be working the next 40 days,” the economy minister said.

“… That is what comes next, and we estimate that it will be around 40 days of negotiations,” Ebrard said.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

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