Business leaders in Baja California are expressing concern over the potential economic repercussions of President-elect Donald Trump’s proposed 25% tariffs on Mexican products. They warn that such measures could lead to increased unemployment and bankruptcies in Mexican border cities.
The tariffs, aimed at addressing migration and drug trafficking issues, are anticipated to significantly impact key industries in Mexico. Avocado growers in Michoacán fear that higher prices may reduce demand in the U.S., especially during peak consumption periods like the Super Bowl. Similarly, tequila producers, who rely heavily on the U.S. market, are anxious about potential declines in sales, which could also affect the U.S. hospitality industry.
Mexican President Claudia Sheinbaum has cautioned that these tariffs could result in job losses in both countries and has indicated that Mexico may impose retaliatory tariffs if the U.S. proceeds with its plan. Economy Minister Marcelo Ebrard emphasized that such tariffs would violate the United States-Mexico-Canada Agreement (USMCA) and could severely affect sectors like the automotive industry.
Analysts predict that the tariffs could plunge Mexico into a recession, with projections indicating a significant drop in GDP. The interconnected nature of the U.S. and Mexican economies suggests that the proposed tariffs could have widespread economic implications for both nations.
