Background on Key Figures and Relevance
Marcelo Ebrard, Mexico’s Secretary of Economy, has raised concerns over the United States’ imposition of a 25% tariff on auto imports from Mexico, while applying only a 15% tariff to similar imports from Japan, South Korea, and the European Union. This situation has sparked a debate between the two nations.
President Donald Trump, however, has shown reluctance to lower these tariffs despite initiating 90-day negotiations on this and other matters. Ebrard recounted a conversation between the Mexican and US presidents in late July, wherein Mexico requested a 90-day period to address disagreements, including the reduction of tariffs. Trump reportedly declined this proposal.
Ebrard’s Criticism and Proposals
During the inauguration of Expo Pyme 2025 in Monterrey, Nuevo León, Ebrard highlighted the discrepancy in tariffs and proposed a mutual review of concerns. He emphasized the “hyper negative” impact of Section 232 tariffs, particularly on steel, and questioned the disparity in tariff rates—25% for Mexico versus 15% for Japan, South Korea, and the EU.
Ebrard also pointed out that around 84% of Mexican and Canadian exports to the US market are free from tariffs, according to US Census Bureau data. However, there are tariffs on the automotive industry with a complex discount system favoring higher regional content.
Currently, the US imposes a 50% tariff on steel, aluminum, and copper imports from all countries and a 25% tariff on auto parts, excluding those from Mexico and Canada until a methodology for determining US content value is established.
Trade Balance and Mexico’s Stance
In 2024, the US had a trade surplus in steel and aluminum along with related products from Mexico, totaling $4.562 billion, with exports amounting to $15.012 billion and imports at $10.450 billion.
Ebrard remains persistent, stating that if a solution isn’t found, it’s not worth pursuing. Mexico’s position is that the US should lower tariffs and await the scheduled review of the North American Trade Agreement (T-MEC) in the coming year.
Key Questions and Answers
- What is the main issue between Mexico and the US? The primary concern is the disparity in tariffs on auto imports (25% for Mexico vs. 15% for Japan, South Korea, and the EU) and steel tariffs (50% for all countries).
- Why is Mexico’s Secretary of Economy, Marcelo Ebrard, concerned? Ebrard believes the current tariffs have a “hyper negative” impact on Mexico’s economy, particularly in steel and automotive industries.
- What is President Trump’s stance on lowering tariffs? Despite initiating 90-day negotiations, Trump has shown reluctance to lower tariffs as requested by Mexico.
- What is Mexico’s proposed solution? Mexico seeks a mutual review of concerns and a reduction in tariffs, specifically advocating for lower steel tariffs.
- What is the current trade balance between the US and Mexico in steel and aluminum? In 2024, the US had a trade surplus of $4.562 billion in steel and aluminum products from Mexico.
