Texas Border Business
By Roberto Hugo González
The recent tariffs imposed by Donald Trump’s administration have generated significant uncertainty in trade between Mexico and the United States. During an update session on foreign trade and customs, customs expert Jorge Torres, president of Interlink Trade Services, and Mtra. Flor Torres, director of CIC, analyzed the impact of these measures and shared key strategies to mitigate their effects on the Mexican economy and the most affected industries.
Why Are These Tariffs Being Imposed? According to Jorge Torres, these tariffs serve various political and economic objectives. “President Trump is using tariffs as a negotiation tool to pressure his trade adversaries and attract more investment to the United States. He also strongly focuses on migration control and national security,” he explained.
In recent months, Trump has implemented tariffs mainly targeting Mexican, Canadian, and Chinese products, including:
- A general 10% tariff on products imported from Mexico and Canada.
- A 50% tariff on products of Chinese and Hong Kong origin.
- An increase in tariffs on steel and aluminum, also affecting Mexico and Canada, with a 25% rate.
- A proposed additional 25% tariff on automobiles, semiconductors, and pharmaceutical products.
“If these tariffs remain in place, we will see a significant impact on Mexico’s competitiveness, which may reduce foreign investment and slow trade growth,” warned Torres.
Impact on Key Industries: Mtra. Flor Torres highlighted that the most affected sectors include the automotive industry, agriculture, steel and aluminum, and technological manufacturing. “Globalization and nearshoring have been key trends for Mexico’s growth. However, these tariffs go against those principles, which could make Mexico a less attractive investment destination,” she stated.
According to Torres, these tariffs will also directly impact U.S. consumers, as “the additional import costs will be passed on to final product prices, leading to inflation and affecting the U.S. economy.”
Strategies to Mitigate the Impact of Tariffs: Given this scenario, Jorge Torres and Flor Torres recommended several strategies to reduce the financial impact of these measures:
- Optimizing customs planning: Applying provisions such as US Components Abroad and Goods Return Without Advance to avoid unnecessary costs.
- Diversifying suppliers: Seeking alternatives in markets not subject to these restrictions.
- Using Foreign Trade Zones and Bonded Warehouses: Deferring tariff payments and optimizing export logistics.
- Renegotiating contracts: Adjusting prices with clients and suppliers to share tariff costs.
- Implementing drawback programs: Recovering tariffs paid on imports when products are later exported outside the U.S.
- Maximizing the use of origin rules under the USMCA: Ensuring compliance with requirements that allow tariff exemptions.
“The key lies in strategic planning and adapting to this new trade environment,” concluded Flor Torres.
What to Expect in the Future?: As negotiations between Mexico and the United States progress, some of these tariffs may be reconsidered. However, Jorge Torres cautions that “we must prepare for a prolonged period of protectionism and constant regulatory changes.”
For her part, Mtra. Flor Torres emphasized the importance of collaboration between the public and private sectors: “Mexico must strengthen its position in the renegotiation of the USMCA and improve logistics infrastructure to maintain its global competitiveness.”
As uncertainty persists, Mexican companies must act quickly, implement mitigation strategies, and stay informed about changes in trade policies. As Jorge Torres pointed out, “adaptability is key to surviving in an increasingly challenging trade environment.”
Trump’s tariffs present a major challenge for Mexico’s exporting industries. However, with proper planning, strategic tools, and effective customs management, companies can mitigate their effects and ensure the continuity of their operations in the U.S. market.
As Jorge Torres and Mtra. Flor Torres agreed that international trade is at a critical juncture. Still, with a solid strategy and adaptability, Mexico can maintain its leadership as a key partner in the global economy.
