When Dennis Nixon began working at a local bank in LAREDO in Texas in 1975, there was a droplet of trade beyond the Mexican border. Nearly $ 1 billion in commerce and 15,000 trucks have been over one -four -four -mile from his office to reduce the economy of the United States and Mexico together.
LAREDO is the busiest port in the United States and is a tube for auto parts, gasoline, avocados and computers. Nixon said, “I can’t choose it anymore. Under free trade transactions, 30 years of economic integration said, “We have created interdependence and relationships that are not always understood and measured until something is wrong.”
Now something has happened. On Saturday, President Trump struck 25 percent of the Mexican government’s imports so that the Mexican government crossed the border beyond the border and made more efforts across the border. President Trump also hit most Canadian products with 25 percent tariffs and imposed 10 %taxes on imports of China.
President Trump doesn’t seem to be afraid to comfort the nearest economic relationship in the United States, a long -time supporter of tariffs and a critic of free trade transactions. He focuses on strengthening the border of the flow of Pentanil, two areas frequently mentioned in the 2024 campaign.
But the president has different beef from Mexico, including economic competition for US workers. The president and his supporters believe that cars and steel imports are weakening US manufacturers in Mexico. And they say that through the US-Mexico-Canadian contract, which is a trade contract signed in 2020 to replace the 2020 North American Free Trade Agreement, it is necessary to be abandoned.
Many companies say that the bonds between the nations will be deeper than most Americans know, and policies such as tariffs to quit them will be painful. Among all major economic partners in the world, the United States and Mexico are most integrated in relation to business, trade, tourism, family relationships, remittance and culture. Sometimes it is intimate to create complaints and efforts to overcome relationships, but also bring a lot of advantages.
“Our country has a symbiotic relationship,” said Juan Carlos Rodríguez, managing director of Tijuana, one of the world’s largest commercial real estate companies.
“Our economy is so intertwined that it will take decades to separate it.” “These scenarios will have a fatal impact on Mexico.”
Mexico’s tremendous dependence on trade with the United States goes back to the 1960s. The manufacturer began to open a factory across the border in response to the labor costs of the United States and Japan.
Trade began when NAFTA was fermented in 1994. For many Americans, the transaction agreement is now synonymous with the public offering and extinguished factory cities. But economists calculate that many areas in the United States have benefited as this agreement has increased trade and economic activities.
As manufacturers moved to Mexico to find cheaper labor, other areas of the United States were severely injured. As the factory village was hollow, it caused a trade backlash to help anti -trade candidates like Trump to win in the office.
In an interview, Peter Navarro, a senior counselor of trade and manufacturing, called NAFTA as a “disaster” to both Mexico and the United States.
“The problem is that China tends to forget how bad NAFTA is because China is so bad.”
In his first term, President Trump threatened Mexico’s tariffs on the border, but instead set a deal. He also threatened to withdraw from NAFTA repeatedly, but instead decided to renegotiate. His advisers have added a provision to an agreement that they believe that they will strengthen US steel and automobile manufacturing, but some are not enough.
President Trump has increased the importance of Mexico for the US economy since the end of the White House. Covid-19 Pandemicic interfered with the global supply chain and began a “nearby” boom.
The company has already moved in China and avoided tariffs imposed by President Trump and avoiding costs and political risks. Manufacturers rushed to an open factory in Mexico and seized the US’s inexpensive industrial bases and proximity to the United States.
This change helped to make Mexico a product product in 2023. As trade between countries expands, the quantum trade deficit with Mexico is especially indicators of President Trump.
US consumers can rely on foreign products at any time. Economists, however, argue that Mexico’s income can have a significantly different impact on China’s imports and the US economy.
This is because there are many integrated supply chains that move back and forth beyond the North American border. Products such as automobiles, electronics, and blue jays are changed from the US, Mexico and Canada from raw materials to parts and converted from the final product.
According to economists from S & P Global, more than 18 % of value was created in the United States before being sent to those countries, according to imported goods from Canada and Mexico. It is much more than the proportion of other countries and how closely the economy is integrated.
Melance creates different benefits. According to a study by the Dallas Federal Reserve Bank, if the factory production of Ciudad Juárez increases by 10 %, the total employment of Texas El Paso is 2.8, focusing on transportation and retail stores. And real estate.
Diego Solórzano, the founder of Desteia, said, “There is a perception that the border is about walls and illegal crossings. “This line in sand is actually the most powerful economic corridor on the planet.”
Solo Jano said last year that about $ 800 billion worth of goods would be over the border and the US-Mexico border was placed at a prominent distance of the world’s 20s.
The two economies depend on each other according to energy demands. Mexico, which depends on the United States for about 70 %of natural gas consumption, is more vulnerable to all confusion.
But the United States also imports about 700,000 barrels of crude oil a day from Mexico. Fuel prices can increase by imposing income tax on these cargo, and diesel warns that energy analysts warned.
Food production is also integrated closely. Mexico supplies about half of the US fresh fruits and vegetables, and the ratio increases in winter. Mexico has emerged last year to a total of $ 30 billion in US agricultural exports.
Bob Hemesath, the fifth -generation farmer in the northeastern Iowa, said Mexico is the largest buyer of American corn and the big buyer he produces.
“The tariff will pay an additional cost for a product that does not need to be there, and the country will be able to see it elsewhere.” He spoke on the farm on a warm day, where he had just finished washing the pig facility.
“This makes me a farmer with economic disadvantages,” he said. “I want to use tariffs as a negotiating tool, but what year do you wear?”
Some Trump officials believe that corn exports are not completely positive. Navarro said NAFTA has begun an illegal immigration problem. This is because the United States brings Mexican agricultural workers to the United States after the trade agreement has entered into force, and then brings Mexican agricultural workers.
“The place that started there, illegal immigration,” he said.
Trade stimulant
President Trump and his supporters have been criticized for the US-Mexican relationship. Some argue that Mexico has violated the terms of the contract that the steel exports are restricted to the United States. They were signed with USMCA, saying that they had shipped steel shipments to the United States to the United States.
(The Mexican steel industry has its own complaints: Tuesday, the Mexican steel machine, Canacero, argued that the export of the US, which did not comply with the contract, has soared.
Concerns are increasing in trade between Mexico and China, especially in the automotive sector. Chinese car exports to Mexico have soared, and some Chinese automakers have scouted for Mexican factory sites.
This raised concerns that Chinese companies will begin exports to the US market with a much lower tariff than to transport Mexico in China.
Brad Setser, an economist of the diplomatic council, said that Mexico’s role was exaggerated as a conduits to Chinese products to the United States, but “there is absolutely a problem in the automotive sector.” One of the three vehicles sold in Mexico last year came from China, he said. This means that exports to China are not currently exporting to the US automobile industry, but to meet the demand for Mexican automobiles.
Other employers say that the United States and Mexico should cooperate to restrict China’s income, but they do not require high tariffs on Mexican products.
Greg Owens, CEO of Sherrill Manufacturing, a flat manufacturer of Cheryl in New York, said he wanted to see the tariffs by preventing the use of Mexico as the back door of the United States. But he opposes that China is a much larger threat and tariff on Mexico.
“China must pack a high -end product factory in Guangzhou to establish a store in Mexico to bypass tariffs.”
