The impact of the tariffs imposed by the US to the aluminum of Mexico would exceed the registered one to 2018, since by incorporating new goods it would reach 22,533 million dollars, according to an analysis of the Mexican Institute for Competitiveness (IMCO).
If President Trump’s barriers are completed, the universe of affected products would reach 4.7% of Mexican exports, equivalent to more than 1.5% of the GDP of 2024, according to a report published Monday by the Private Analysis Center.
IMCO explained that contrary to 2018, this time the Trump government includes additional categories about aluminum, such as auto parts, appliances and electronic products, crucial in the industry of at least 11 Mexican entities.
The above would imply a drastic increase in the amount of imports made by the United States from Mexico.
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He explained that the details of the affected tariff fractions are delineated in the annexes of proclamations 10895 and 10896, published on February 18.
He said that his analysis on the impact of tariffs focused on chapters 72, 73 and 76, the first two related to iron and steel and the third with aluminum.
He pointed out that of the 123 tariff fractions included in the proclamation related to aluminum (the 10895), 68 correspond to products made in the automotive industry, such as air conditioning systems, vehicle tapas and other essential parts for manufacturing and assembly.
“In 2024, only these new 68 fractions – all additional to those contemplated in the 2018 tariffs – represented a value greater than 20 billion dollars, equivalent to 3.91% of the total exports of Mexico to the United States,” The IMCO pointed out.
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He added that the inclusion of vehicle parts and accessories will directly impact the automotive sector, one of the country’s main export sectors.
He recalled that the manufacturing sector in Mexico was approximately 44% of its total exports, and the automotive industry represented 36% of all exports in 2023.
Given this scenario, the IMCO recommended that Mexico fully comply with the spirit and lyrics of the TMEC, which mobilizes its allies in the Capitol, in state capitals, agricultural and industrial chambers, academia and research centers, and that align its strategies with Canada.
He also proposed to prepare the retaliation list strategically, reducing the impact to Mexican consumers, in case tariffs enter into force and, given the case, facilitate access to alternative suppliers.
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