(Bloomberg) – Mexico plans to continue negotiations with the U.S. on steel and automatic tariffs, even as President Claudia Sheinbaum’s administration celebrates its preferential treatment compared to the new position of U.S. President Donald Trump.
Economic Secretary Marcelo Ebrard will travel to Washington next week to continue talks with the U.S. government. He will seek to improve Mexico’s status, while exports from other countries are subject to tariff rates of 10% or more.
“Our goal is that we manage to have the best conditions over the next 40 days compared to the rest of the world in the automotive industry, and so does steel and aluminum.” “We want Mexico to be competitive.”
Sheinbaum said she is in touch with senior executives of Mercedes-Benz Group AG, Volkswagen and BMW AG. The Mexican president said she is looking for automakers to retain their existing Mexican plants and expand them, adding that the auto industry is responsible for 30% of Mexico’s exports.
The U.S. imported Autos from Thursday began raising a 25% tariff, although parts now covered by the USMCA Free Trade Agreement are still tax-free. Since March, Mexico and Canada have imposed 25% tariffs on a few goods not covered by the USMCA. The United States also recently set a 25% tax on inbound shipments for all steel and aluminum products that went into effect on March 12.
Mexico’s peso strengthened earlier on Thursday, reaching 1.4% to 19.8946 USD at 8:46 a.m. in Mexico.
On Wednesday, the Trump administration announced that most countries exporting to the U.S. had 10% tariffs, as well as additional fees for about 60 countries. Mexico and Canada do not pay additional taxes, which Sheinbaum describes as the result of successful negotiations with the Trump administration.
“We have a favorable treatment right now,” Sheinbaum said. “It has to do with the respectful relationship we have established with President Trump.”
The consequences of Trump’s tariff announcements have caused Stellantis NV to stop working in factories in Canada and Mexico.
– Assisted with Alex Vasquez.
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