Background on Ildefonso Guajardo and the T-MEC
Ildefonso Guajardo, the former Secretary of Economy and lead negotiator of the Tratado entre México, Estados Unidos y Canadá (T-MEC), has recommended that Mexico impose retaliatory tariffs on the United States. Guajardo, who played a crucial role in establishing retaliatory tariffs during Donald Trump’s first presidential term, believes that Mexico should reconsider its current strategy of avoiding retaliation.
Guajardo’s Experience and Recommendations
During his tenure as Secretary of Economy, Guajardo successfully implemented retaliatory tariffs in response to the US imposing steel and aluminum import tariffs worldwide. This action eventually led to Mexico being excluded from the list of countries affected. Now, Guajardo advises that Mexico should consider imposing retaliatory tariffs to protect the T-MEC, especially with the global trade landscape changing under Trump’s influence and the upcoming T-MEC review in July 2026.
Preserving the T-MEC and its Importance
Guajardo emphasizes that Mexico must uphold its commitments under the T-MEC, as it is crucial for both Mexico and Canada to prevent risks to their obligations and encourage the US to maintain an open trade process.
Mexico’s Retaliatory Measures Against the US
In July 2018, Mexico took action against approximately $3 billion worth of US exports as retaliation for the US imposing global tariffs of 25% on steel imports and 10% on aluminum imports starting March 23, 2018.
- Mexico imposed a 20% tariff on pig legs, wooden crates, and pork meat imports from the US.
- Apples, blueberries, and potatoes faced a 20% tariff.
- Steel products, including plates, sheets, slabs, rods, tubes, and wire rod, were subjected to import duties ranging from 15% to 25%.
- Pork sausages were taxed at 15%.
Subsequently, Mexico escalated its retaliatory measures by raising tariffs on dairy products to 20% and pork products to 20%. Guajardo’s recommendations aim to ensure Mexico’s commitment to the T-MEC and maintain a balanced trade relationship with the United States.
Key Questions and Answers
- What is the T-MEC? The Tratado entre México, Estados Unidos y Canadá (T-MEC) is a free trade agreement among Mexico, the United States, and Canada, replacing the North American Free Trade Agreement (NAFTA).
- Why is Guajardo advocating for retaliatory tariffs? Guajardo believes that Mexico should impose retaliatory tariffs to protect the T-MEC and maintain a balanced trade relationship with the US, especially considering the changing global trade landscape under Trump’s influence.
- What actions has Mexico taken so far? In July 2018, Mexico implemented retaliatory tariffs on approximately $3 billion worth of US exports, targeting various products such as agricultural goods, steel, and pork products.
