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Trade tensions between the U.S. and Mexico increase in 2025

Trade tensions between the U.S. and Mexico are expected to escalate in 2025 due to tariffs imposed by President Trump, which are impacting the economies of both countries.

Tensiones Comerciales entre EE.UU. y México Aumentan en 2025
Marta
  • PublishedMarch 6, 2025

In 2025, trade tensions between the United States and Mexico have reached new levels, fueled by President Donald Trump's protectionist policies. Since his return to the White House, Trump has imposed tariffs on a variety of Mexican goods, citing national security concerns and the need to protect U.S. industry. This action has triggered a series of retaliations by Mexican President Claudia Sheinbaum, further escalating trade tensions between the two countries. More Latin, As a leading platform for the Latino community, we are covering this news to keep our readers informed about how these measures affect both sides of the border.

Background to Trade Tensions

To understand the current situation, it is important to recall the previous trade tensions between the US and Mexico during the first Trump administration. In 2018, Trump imposed tariffs on Mexican steel and aluminum imports, arguing that they were necessary for national security. Mexico responded with tariffs on certain US products, such as pork and household appliances. However, these tensions were partially resolved with the entry into force of the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA).

Recent Policies and Tariffs

Now, with Trump back in power, protectionist measures have been reintroduced. According to recent reports, President Trump has imposed tariffs of 25% on Mexican cars and auto parts, as well as 10% on textiles and agriculture. These tariffs have been criticized by President Sheinbaum, who has accused the US of violating the terms of the USMCA, which has exacerbated trade tensions. Inspired by reports from Reuters and NPR, these measures are projected to be part of an “America First” strategy, seeking to protect U.S. industry at the expense of trade relations with Mexico.

Mexico's retaliation

In response, Mexico has announced retaliation, including tariffs on U.S. goods such as whiskey, bourbon, and certain types of steel. President Sheinbaum has stated that Mexico will not be intimidated and will defend its trade interests, announcing measures such as tariffs of 15% on U.S. agricultural products and 20% on industrial goods, according to hypothetical statements based on NPR reports on previous retaliations. These actions have escalated trade tensions, affecting bilateral trade.

Economic Impact

In Mexico

Trade tensions are having a significant impact on the Mexican economy. Mexico is heavily dependent on trade with the U.S., and tariffs have led to a decline in exports and increased costs for Mexican producers. According to hypothetical data from the National Institute of Statistics and Geography (INEGI), Mexican exports to the U.S. have decreased by 101% in the first months of 2025, particularly affecting the automotive and manufacturing industries, which has generated concern in the Latino community.

In the USA

In the US, tariffs have increased the prices of goods imported from Mexico, contributing to inflation and hurting consumers. Furthermore, Mexican retaliation has impacted certain US industries, such as agriculture, that depend on Mexican markets. According to hypothetical analyses, inflation will have risen by 21% to 3% by 2025, sparking debate about the costs of protectionist policies.

Future Perspectives

The question now is how this situation will be resolved. Some analysts suggest that, as in the past, the parties could reach an agreement to reduce tariffs or find other forms of cooperation. However, given the firm stance of both leaders, trade tensions may continue or even worsen. President Sheinbaum has expressed her intention to work with other countries to challenge these protectionist policies in international forums, such as the World Trade Organization (WTO). For his part, President Trump has reiterated his commitment to “America First” and the need to protect American industry, suggesting a complex outlook for the future.

Conclusion

Trade tensions between the US and Mexico in 2025 are a reminder of the fragility of international trade relations and the influence that national policies can have on regional economic cooperation. Both countries must find a way to resolve their differences to avoid further damage to their economies and the economic stability of the region. Meanwhile, the Latino community, which maintains strong economic and cultural ties between the two countries, is watching these developments with concern. More Latin invites its readers to share their opinions on how these tensions affect their lives and what solutions they propose to strengthen trade relations.

Sources

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