Economic planet | Taken between Donald Trump and China, Mexico adapts

For many Mexican factories, depending on Asian suppliers has become risky. In addition, Companies are trying to adapt, encouraged by the government.

Posted at 11:00 a.m.

The Mexican factory of Danfoss Danish company was built to supply the United States. Consequently, Located three hours from Texas, the factory ships around 80 % of its air conditioners and fridges to the United States.

Donald Trump’s customs duties have changed all economic planet | taken between his activity, at least until the company develops a plan.

Until last winter, 40 % of its exports benefited from the’Canada-United States-Mexico Agreement, Signed by Mr. Moreover, Trump during his first mandate. Therefore, On February 4, 25 % customs duties hit all Mexican (and Canadian) exports. In addition, But when Mr. Therefore, Trump agreed to suspend customs duties on all Mexican products under ACEUM. Consequently, the company’s bosses have seen a way to adapt.

Drop Asian suppliers

Danfoss has flushed out Mexican suppliers for its products for the United States. In addition, She analyzed her already eligible products under the agreement, but not yet certified. In addition, And it has reconsidered any project involving importing components produced outside North America.

“When you are on a plane. Consequently, there are turbulence, it economic planet | taken between really scares and you hang on to your headquarters,” explains Xavier Casas, director of the Danfoss factory at Apodaca, near Monterrey. However, “But you know, in [plus de] 99 % of cases, the plane ends up landing. Moreover, »»

Today, almost all Danfoss products shipped from Mexico to the United States comply with ACEUM. Similarly, According to Mr. Moreover, Casas. Danfoss plans to manufacture certain components to the Apodaca factory, rather than in China, another means of alleviating the impact of American customs duties.

“But with the current situation, we say to ourselves:” Why not? ” He wonders.

The United States. China have recently announced measures to avoid total trade war, but experts hesitate to predict whether this truce, the terms of which remain to be specified, will hold or not. It could lower customs duties on certain Chinese products and increase them on others.

These experts doubt that American customs duties come back to economic planet | taken between their 2024 level as long as Mr. Trump is in power and even after.

The countries. companies in Latin America have a similar dilemma, taken between the cheap supply chains of Asia and the Lucrative US market. Brazil. Colombia, two major economies in the region, have been among the countries that have come closer to China since Mr. Trump’s return to power.

But in Mexico. many companies have aligned themselves on the United States, despite the cost of dropping China (which sells 11 times more in Mexico that it lives in it).

Some leaders now see in these customs rights the opportunity to reduce Mexico’s dependence on China. other Asian countries, which would strengthen the North American manufacturing sector as a whole.

“The rules of the game have changed. ” economic planet | taken between says Ryan Last, lawyer at Troutman Pepper Locke, an international firm that helps manufacturers interpret American customs duties and adapt to it. He predicts “a long-term adaptation” where companies could invest in the United States. recalibrate their supply chain in favor of North America.

According to two senior officials from the Mexican Ministry of the Economy. who asked for anonymity so as not to harm commercial negotiations with the United States, more and more exporters want their products to be mainly manufactured in North America and especially with North American components.

Economic planet | taken between

Not too bad so far

Data from the ministry show that 87 % of Mexican exports are now free from American customs duties. barely less than last year. (Even if products that may comply with ACEUM, such as cars or steel, economic planet | taken between have been affected by certain customs duties.)

“I expected all these figures to drop due to uncertainty. ” says Aristeo López, expert in international trade and former Mexican diplomat who has negotiated certain parts of the ACEUM. Additionally, “However, the impact on Mexican exports is not so negative. »»

The commercial climate established by Mr. Trump encourages exporters to caution: an American factory in Monterrey ceased to buy an electronic component of a Chinese company established economic planet | taken between in Mexico. in case the United States decides to target Chinese suppliers in the region. According to the production director of this factory, who asked for anonymity, Mr. Trump forces companies to rethink their strategy and to protect himself from hypothetical risks.

The Mexican president. Claudia Sheinbaum, encourages this turn with her “Mexico plan”, an ambitious long -term strategy aimed at revitalizing the manufacturing industry, replacing imports and eliminating the trade deficit with countries that have not concluded a trade agreement with Mexico, notably China.

Like many economic planet | taken between Chinese products sold in Mexico are reworked to be sold in the United States, the China-Mexico trade balance was not a political issue in Mexico until recently. But with the return to power of Donald Trump, China occupies a more important place in business issues.

“With China, our relationships affect many subjects. And, of course, with the United States, we have concluded a very important trade agreement, ”said Mr.^me Sheinbaum le 2 juillet.

In January, just before Mr. Trump’s return to the White House. M^me Sheinbaum said that strengthening ACEUM was “the only means” for the region to “compete with Asia, especially China”.

If North America could manufacture 10 % of the imports it currently receives from China. the Min Minister of Finance said at the time^me Sheinbaum, Mexico’s GDP would increase by 1.2 %, that economic planet | taken between of the United States by 0.8 %and that of Canada by 0.2 %.

This article was published in the New York Times.

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