Trump Tariff Plan Overshadows AMSOC Gala in Mexico

US President Donald Trump’s surprise announcement of 30% tariffs on all Mexican exports overshadowed a July 12 gala hosted by the American Society of Mexico (AMSOC) honoring the newly appointed US Ambassador to Mexico. Billed as the inaugural "Mexico-US Friendship Gala" by AMSOC President Larry Rubin, the event brought together business leaders, politicians and members of civil society in an effort to welcome Ambassador Ronald D. Johnson to Mexico City. Despite efforts by speakers to highlight the historic and neighborly ties between the two nations, the tariffs — set to take effect on Aug. 1, 2025 — dominated the evening's conversations.

Speaking to the press, Rubin called for urgent action by both governments to avoid long-term economic harm. He also criticized the Mexican government for failing to uphold its commitments under the United States-Mexico-Canada Agreement (USMCA). In his keynote, Rubin pointed to a “Special 301” Report by the US Trade Representative (USTR), which placed Mexico on its priority watch list for inadequate intellectual property protections. A post-event press release from AMSOC urged the Mexican government to approve secondary legislation to safeguard test data for new pharmaceutical and agrochemical products and crack down on the trade of counterfeit goods. The release also encouraged Mexico to increase transparency in rights registration and dispute resolution.

Addressing concerns that the tariffs reflected a lack of respect from Washington, Rubin argued that Mexico had largely been spared in Trump’s global tariff war. “If we look at the countries with the fewest real tariffs imposed, Mexico is among them,” he said. He noted that only 2% of vehicles exported to the US have faced tariffs, although he acknowledged the damaging impact aluminum and steel duties have had on Mexican industry. Still, Rubin said he understood Trump’s desires to boost domestic industrial production, particularly in the US rust-belt states of Pennsylvania, Ohio and Wisconsin, which voted for the president in 2024.

Rubin’s remarks came two days before Washington announced an additional 17% duty on Mexican tomatoes, which account for 70% of the US market and generate more than US$3 billion annually. The new measure could cost over 100,000 Mexican jobs, including 50,000 in the state of Sinaloa and another 50,000 across Sonora, San Luis Potosi, Michoacan and Baja California. According to Goldman Sachs, the blanket 30% tariffs — applied even to goods currently exempted under the USMCA — could push Mexico into recession. At her Monday morning press conference, President Claudia Sheinbaum expressed optimism, saying she was “very confident” a deal could be reached before the tariffs take effect.

On the red carpet at the AMSOC gala, Mexican politicians and business leaders reacted to the announcement. Lorenzo Córdova, former head of Mexico’s National Electoral Institute (INE), emphasized the importance of maintaining free trade between the nations: “Free trade has been a foundation of our relationship for more than three decades — and a foundation of both economies.” Kenia López, a federal congresswoman from the opposition National Action Party (PAN), urged President Sheinbaum to negotiate the best possible deal for Mexico and emphasized the importance of addressing domestic security to ensure investor confidence.

Miguel Ángel Martínez, President, National Chamber of Cargo Transportation (CANACAR), said the tariffs had caught Mexico’s business sector by surprise. Still, he expressed hope that Sheinbaum’s negotiating team could reduce or eliminate the proposed levies. Roberto Campa, Director of Corporate Affairs, FEMSA, advised calm and noted his experience negotiating with Washington, saying “the conditions will be there for a good agreement.”

For his part, Ambassador Johnson avoided directly addressing the tariffs during his remarks at the gala but acknowledged that improving bilateral relations would “not be free of cost or pain.” He emphasized that “America First does not mean America Alone” and said he looked forward to working with President Sheinbaum to strengthen security, prosperity and cooperation. Johnson, who has a background in military and intelligence services, also highlighted the need to dismantle criminal networks, combat fentanyl trafficking and address human trafficking. Both Johnson and Rubin referred to Mexican cartels as “terrorist organizations,” an official US designation that President Sheinbaum has warned could threaten Mexico’s sovereignty. During his Senate confirmation hearings in March, Johnson refused to rule out US military action on Mexican soil as a tool in the fight against cartels.

Johnson downplayed the issue of migration, focusing instead on non-Mexican migrants passing through Mexico en route to the United States. However, questions about deportation efforts targeting the Mexican-American community surfaced. Rubin noted that AMSOC is working with NGOs in Mexico to place recently deported migrants in bilingual jobs. Congresswoman López called on the government to offer targeted support and funding to states and municipalities receiving repatriated migrants. “We have asked that it not just be a matter of rhetoric, but that federal resources be allocated for this urgent issue,” she said. According to reports, over 50,000 Mexicans have been deported since Trump’s return to the Oval Office in January.