Impact on the Automotive Industry

The automotive industry has significant regional integration under the USMCA, allowing foreign companies to export products to the US at low tax rates. However, the Trump administration argues that this condition has been exploited by China to benefit its auto industry. Mexico has become the third-largest exporter of vehicles worldwide, with most units shipped to the US. The imposition of tariffs on Mexican imports will weaken trade, reduce competitiveness, and affect economic stability.

Electronics Prices on the Rise

The electronics and appliance sector will also be affected, with Mexican exports of electrical and electronic equipment reaching $8.9 billion in November 2024, mostly destined for the US. The production of these devices is concentrated in Baja California, Chihuahua, and Nuevo León, where thousands of jobs and assembly plants could be at risk. US consumers can expect to pay extra for computers, monitors, and refrigerators due to the tariffs.

Consequences of the Tariffs

The tariffs will have significant implications for US consumers, with an estimated additional cost of $7.1 billion for 40 million families purchasing computers. The move is also expected to lead to job losses, reduced productivity, and decreased competitiveness. Experts warn that the tariffs could violate the USMCA agreement, potentially triggering a trade war with serious economic consequences for the countries involved.