Businesses at southern border relieved as Mexico escapes new US tariffs
YUMA, AZ (AZFamily) — More than 180 countries face reciprocal tariffs under President Trump’s sweeping new trade measures.
However, Canada and Mexico were spared from the list. Goods from these nations covered by the United States-Mexico-Canada Agreement remain exempt, offering much-needed relief to Mexican businesses along the southern border.
In February, Trump announced plans to impose a 25% tariff on Mexican goods, citing concerns over drug trafficking and immigration. However, after discussions with Mexican leaders, he delayed the tariffs until April, leaving importers in limbo.
Daniel Bazua, a customs broker overseeing imports from Mexico with R.L. Jones Customhouse Brokers, reports that while his produce-exporting clients continued shipping goods to the U.S., his manufacturing clients slowed operations due to the ongoing uncertainty. “What we have seen is a decrease of about 20-30% in the shipments going north,” said Bazua.
He said his clients are pleased with Wednesday’s new tariffs exempting Mexico. Bazua stated that some manufacturing companies had halted the purchase of raw materials while awaiting a definitive answer on tariffs. “With the clear path that we have right now, they’re going to be able to program their production for the next six months to one year,” he said.
While goods covered under the USMCA are exempt, this does not apply to Trump’s tariffs on steel or the new 25% tariff on automobiles and parts. Some of these auto-part factories are located across the border in San Luis, Mexico. “There’s definitely some maquiladoras (factories) that will be affected because they are manufacturing automobile parts,” said Bazua.
Bazua said some car parts manufactured in Mexico will receive a partial exemption under the Mexico trade agreement, but not all of them. While Trump champions a comeback for America’s manufacturing industry, Bazua doesn’t expect that to happen anytime soon. “It’s going to take more than a year, two years, three years, to bring back those manufacturers of raw materials to the United States,” Bazua said.
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