Mexico tariffs Ebrard USMCA review after U.S. midterm elections, Digi Mart USA News (Mexico City): Mexico will not escape the tariffs imposed by Donald Trump even with the Democratic Party’s victory in the U.S. midterm elections, Economy Secretary Marcelo Ebrard acknowledged.
Speaking at the Innova Fest Mérida event, the official explained that although Democrats gained control in the U.S. Congress, this does not mean they can end Trump’s trade measures.
Ebrard said tariff powers largely rest with the president, which does not change. “The authority over tariffs corresponds, or is largely held, by the president, so that does not change…
Therefore, most of the tariff relationship does not change much,” he said in an interview with media.
Ebrard acknowledged, however, that the situation could differ for the Mexico-United States-Canada Agreement (USMCA), because the U.S. Congress does have powers that can influence decisions related to the trade pact.
Despite this scenario, Ebrard said Mexico has already overcome “the great risk Mexico faced,” which was the possibility that the USMCA would cease to be in force. According to the secretary, there had been an expectation that the trade agreement would not continue, which could have put at risk the conditions under which Mexico conducts much of its trade with the United States.
“In fact, that is what everyone expected, that it would no longer be in force. Well, in June of this year, it was agreed with the United States that the treaty would be extended another 10 years, until 2036, and that we will conduct a review each year,” he stressed.
According to Ebrard, Mexico has managed to keep the treaty in place until 2036, though with annual reviews. The former foreign minister said three review rounds have been completed so far and that Mexico is awaiting a fourth, which was postponed due to the U.S.
midterm elections. “Because the election had to pass according to U.S.
authorities,” he said.
Ebrard also noted that 80% of Mexico’s exports to the United States pay no tariffs, meaning most Mexican goods continue to enter the U.S. market without these duties.
