Tijuana entrepreneurs alert the impact of tariffs on the local economy • Business • Forbes Mexico

0
4


Tijuana businessmen recognized on Wednesday the special “vulnerability” of this border region after the entry into force of 25%tariffs, imposed by US President Donald Trump, so they warned that they could cause an investment collapse and companies leakage.

This was indicated by Alejandro Jaramillo Osuna, president of the National Chamber of the Transformation Industry (Canacintra), ensuring that the measure is a hard blow against the two largest business partners of the US, which could generate chaos in the industry with the massive loss of jobs.

“Right now it is not a right time to receive new work orders, and this does not encourage investment by attacking certainty. In addition, in the medium and long term we will be seeing the destruction of employment and companies that can go from the country, ”Jaramillo said one day after Trump’s announcement.

Tijuana is the largest city of the border between Mexico and the US, with a constant flow of goods and workers from and to the south of California, especially San Diego.

Almost half of the employment in the industry of this city with two million inhabitants is directly linked to foreign trade and more than 85% of companies that export products to the United States are of US origin, according to official data, so the coup of the commercial war is inescapable.

Lee: EU announces that tariffs on cars from Mexico and Canada are postponed to April 2

“There is no way to minimize it. We are especially vulnerable because we are border and it is an industrial region where this sector has a great weight and is very exported, ”he said.

Jaramillo said that the objective of the employer “is to prevent contraction in the workforce, we want to encourage companies to have the greatest possible patience so as not to make template cuts right now and wait a couple of months to see if this dissipates as we all expect.”

The business leader also said that the current treaty between Mexico, the United States and Canada (T-MEC) was negotiated with Trump, so, part of the problem, is that these tariffs contravene, paradoxically, that same treaty that the current president negotiated in 2019.

“With this, two things happen at the same time: on the one hand, they rare the environment because it is difficult to negotiate with someone who has just broken the previous agreement you made and, second, because if they accelerate it it is because you have to find a way to amend it,” he said.

Main affectations in the automotive and auto parts industry

Finally, Jaramillo Osuna also stressed that the Puntal Industry in Mexico already binational level, is the automaker, since this country is one of the main car exporters to the United States.

“In this, very complex supply chains intervene with multiple operations on both sides of the border and to remain these tariffs would have important losses of jobs,” he said.

He said, however, that in the Mexican state of Baja California, where Tijuana is located, the automotive industry is not as relevant as in other parts of the country, however, it is important because, together with this sector, the auto parts go.

Lee: Sheinbaum will seek to speak with Canada about US tariffs

“It is not only the complete team that is leaving, but the components that are manufactured here and this is added and the appliance industry,” he said.

President Claudia Sheinbaum has indicated that she will talk with Trump this Thursday to try to end American tariffs, although she has said she plans a package of “tariff and non -tariff measures” in case they persist and that he would announce on Sunday.

With EFE information

Do you like to inform yourself for Google News? Follow our showcase to have the best stories


LEAVE A REPLY

Please enter your comment!
Please enter your name here