Proposed tariffs on Mexican imports by the U.S. could severely disrupt automotive supply chains and raise consumer prices.
Key impacts include:
Tariffs of 25% on all Mexican products could lead to increased costs for U.S. consumers.
Automotive sector imports from Mexico exceed $130 billion, with products crossing the border multiple times during production.
Increased costs may result in inflationary pressures in the U.S. market.
Loss of competitiveness for Mexican exports could lead to significant job losses in Mexico.
Experts warn that tariffs could trigger a recession in Mexico, affecting both economies.
Overall, the proposed tariffs threaten to undermine the benefits of the USMCA, impacting both U.S. consumers and the Mexican economy.