U.S. tariffs will likely hurt Mexico in the short term, but should current trade dynamics persist, the country's partial duty-free access access to the U.S. market will help Mexico gain an edge over its competitors, likely attracting investments that help offset damage caused by U.S. protectionism. As of April 23, Mexico is facing a 25% tariff on all exports to the United States that do not comply with the U.S.-Mexico-Canada Agreement (USMCA), which accounted for roughly half of Mexico's exports to the United States in 2024. Mexico's steel and aluminum, as well as cars and auto parts, are also subject to 25% tariffs that Washington has enacted on all countries, while the White House announced on April 14 that it will impose 21% duties on Mexican tomatoes starting July 14. On April 3, one day after U.S. President Donald Trump unveiled his "reciprocal tariffs," Mexican President Claudia Sheinbaum said Mexico...
