USMCA / Imports from China

USMCA. Following Canadian Prime Minister Justin Trudeau's comments that the future of the USMCA depends on Sheinbaum’s actions, the Mexican president emphasized the need to review the context of Trudeau’s remarks and reaffirmed her government’s commitment to preserving the agreement. “Our position is clear, and our intention is well known. The agreement is highly beneficial to all three countries. It fosters complementarity, economic growth, development, and prosperity,” Sheinbaum stated.

Earlier, Doug Ford, Premier, Ontario, proposed removing Mexico from the USMCA, citing concerns about unfair competition from Chinese companies. At the G20 Summit in Rio de Janeiro, Brazil, Trudeau directly expressed his concerns about these investments to President Sheinbaum. While Trudeau emphasized that his government intends to maintain USMCA, its future depends on Sheinbaum’s decisions. However, he did not specify which decisions were being considered.

Strategy to Reduce Imports From China. Sheinbaum announced that Mexico is developing a strategy to reduce imports from China and boost domestic production. However, she once again clarified that there is no triangulation of Chinese products to North America. “The United States imports a significant volume of goods from China, which has been part of an economic strategy for many years, as it has been for both Canada and Mexico,” Sheinbaum remarked.

As USMCA goes through its scheduled review, a key priority will be addressing China’s commercial and economic relationship with Mexico, with the aim of limiting Chinese trade and investments in Latin America. Previously, Rogelio Ramírez de la O, Minister of Finance, highlighted the lack of reciprocity in the trade relationship with China, noting that while China sells goods to Mexico, it does not purchase from Mexico, resulting in a trade deficit of US$104.132 billion for the country.

Donald Trump. President Claudia Sheinbaum stressed that during the previous administration of López Obrador, Donald Trump was acknowledged for his respect toward Mexico and emphasized that she plans to continue this approach.

Trump's first term, from 2017 to 2021, was marked by significant policy shifts and a tumultuous political landscape. He focused on tax cuts, deregulation, and an immigration reform, while also prioritizing an "America First" foreign policy. The newly elected president has proposed new tariffs, to renegotiate trade agreements, and has raised the possibility of using military force against cartels, all of which could strain bilateral relations, highlight experts. While the outlook remains uncertain, this is not the first time the Mexican government has had to navigate a Trump administration. López Obrador, President Sheinbaum’s predecessor, faced similar tariff threats from Trump, which he managed by deploying Mexican forces to control migrant flows. This informal arrangement allowed Mexico to address migration concerns while the US refrained from intervening in Mexico's internal affairs.