The director of the Mexican Association of the Automotive Industry (AMIA), Odracir Barquera, told the EFE agency this Wednesday that the tariff threats from the Republican candidate and former president Donald Trump are part of the electoral noise and a “very hypothetical assumption.”
“We are in the obvious heat of the electoral statements, what the Republican candidate has said is for a very hypothetical assumption because it would affect a universe of companies that are not present in Mexico today, not directly the companies that have already been investing for many years and that are perfectly integrated between the three countries,” he expressed in an interview.
Mexico is closely watching the future of the North American electoral race, where the Democrat, Vice President Kamala Harris, faces former President Trump in a tight election that will take place on November 5.
Read: ‘If I am president, Mexico will not sell a single car in the US’: Trump
These elections could impact the Mexican industry and proof of this are Trump’s warning to implement tariffs of 100% to 300% on cars made in Mexico and a general tax on imports.
But the AMIA director is cautious regarding the electoral outcome in the neighboring country and avoids opting for either of the two candidates.
“We are in a moment of many statements between the candidates to be able to finish dragging the vote they want. I believe that in Mexico what we have to do is wait for the November election to pass and, once it passes and we are clear about who wins, between November and January, monitor what type of additional statements they make,” said the leader of the sector.
Barquera also recalled that the US Government is not the only one that will undergo changes in the near future in the region, since 2025 will be an election year in Canada.
The review of the Treaty between Mexico, the United States and Canada (TMEC) is scheduled for 2026, so three new governments will be in charge of closing the new terms of an agreement sealed in 2018 and in force since 2020.
“The ideal is that there are no more changes, the rules of origin and requirements for the automotive industry are the highest in the world,” said the leader of the AMIA.
Barquera explained that there is already a rule of origin of 75% national content in cars.
“No treaty has it, and 40% of labor content, no treaty considers labor content, and by 2027 you will have 70% of aluminum purchases, no treaty has that component,” he explained.
‘Review of the USMCA will be complex’
The hope of the Mexican automobile sector is therefore to emerge from the review with greater facilitation of integration between the three countries and “that there are no restrictions or protectionism.”
“Whoever wins the United States election, the USMCA review process is going to be complex because it is a complex issue by nature and here what we have to ensure is that the three countries achieve that 2026 is a discussion of how to strengthen ourselves together.” as a region and not from a discussion of restrictions between our countries,” the director hoped.
Read: Northern border economy resents Trump’s tariff warnings
This in a context in which Mexico’s economy is already resenting Republican candidate Trump’s tariff warnings, two weeks before the elections in the United States, an effect that is particularly palpable on the border, where the exchange rate has skyrocketed. .
President Claudia Sheinbaum recognized this Tuesday the impact of Trump’s protectionist statements on the peso, but stated that the USMCA “is not at risk.”
“According to what they propose, the fall of the peso is due to some statements by one of the candidates for president of the United States. I think they are statements in the campaign. The treaty is not at risk,” the president declared in her morning conference.
With information from EFE
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