President Reports Response Will Not Be Given Until After April 2.
Mexico City.- President Claudia Sheinbaum Pardo announced that, after April 2, Mexico will provide a comprehensive response to the United States regarding President Donald Trump's decision to impose reciprocal tariffs on all countries around the world, as well as on steel, aluminum, and automobile imports. She emphasized that her government's responsibility is to protect the Mexican people, jobs, and companies.
"The first thing the people of Mexico need to know is that we will always protect Mexico; that is our responsibility. We have to defend the jobs created in Mexico, the jobs that exist, and Mexican companies as well. That is part of our fundamental work in the development of the country and in our relationship with the United States government, always upholding the principle of our country's sovereignty, the defense of our country's sovereignty," she stated.
The Chief Executive explained that the executive order signed yesterday, March 26, by President Trump on tariffs on auto parts and automobiles contains two clauses establishing that auto parts from countries that are party to the United States-Mexico-Canada Agreement (USMCA) will be tariff-free on imported automobiles.
“There are two special clauses for countries that are party to the United States-Mexico-Canada Trade Agreement: ‘Automobile importers, under the United States-Mexico-Canada Agreement, will be given the opportunity to certify their U.S. content, and systems will be implemented so that the 25 percent tariff will only apply to the value of their non-U.S. content.’ Then, there’s another element, right here, that says: ‘Auto parts that comply with the USMCA will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process for applying tariffs to their non-U.S. content,’” she read.
She explained that both countries have a strong integration in the automotive industry, which is why the possibility of a Preference System for Mexico is being discussed during the talks with the US government, so that all suppliers in Mexico would receive some type of discount on tariffs.
"Now, we always negotiate with one premise: the interest of the people and the interest of the nation, and seeking the best conditions for the people of Mexico and for the nation. And it is with that perspective that Marcelo (Ebrard, Secretary of Economy) is working with the Secretary of Commerce. The talks are still ongoing, and we will wait until April 2nd to see how everything turns out, and from there we will also decide on the measures we will take, because we have to take measures in the interest of the people of Mexico and the interest of the nation, in the best possible position with the United States," she added.
She emphasized that Mexico is the only country that maintains a high level of communication with the United States government, particularly with Secretary of Commerce Howard Lutnick.
He reported that, in light of the U.S. tariffs on the automotive industry, he will meet with global leaders of this sector in Mexico, particularly with companies primarily with U.S. capital, to discuss ongoing negotiations. He also emphasized that the goal of Plan Mexico is to ensure that everything manufactured in Mexico is sold in Mexico.
"That's why I say that the answer after April 2nd is not only how we are going to respond to the United States, which is important, but how we consolidate Plan Mexico, which will allow us to grow, create jobs, and distribute wealth, which is one of the goals for reducing poverty," he added.
Through a link from Washington, D.C., to the National Palace, Secretary of Economy Marcelo Ebrard Casaubon explained that Mexico exports nearly 3 million vehicles to the United States. While 40 percent of auto parts consumed in the U.S. are imported from Mexico, the vast majority of car components made in Mexico are of U.S. origin.
Therefore, during talks with U.S. Secretary of Commerce Howard Lutnick, discussions have begun about creating a Preference System for Mexico so that domestic suppliers can receive a discount on the tariffs imposed.
"What we're seeking is for products made in Mexico to ultimately have the best price than any other country, such as Germany, Japan, South Korea, or any other country that also exports to the United States. That's the preference system the President's Office has asked us to organize," he explained.
In addition, the goal is to ensure that parts that cross borders repeatedly do not have to pay these types of tariffs. Therefore, he noted that, in the automotive industry between the United States, Canada, and Mexico, a component such as the piston crosses borders up to seven times during the manufacturing of a car, so the implementation of tariffs would increase the price of the manufactured product.
"So, this has also been clearly established as not going to happen," she added.
She reported that, during his meetings with Secretary of Commerce Howard Lutnick, the deal has been very good and that the arguments Mexico has presented in recent weeks have been understood.
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