When Dennis Nixon started working at a regional bank in Laledo, Texas in 1975, he had a trade dripping over Mexico. Currently, only a quarter of miles from his office, more than $ 15,000 every day and more than 15,000 trucks every day, crossing the line every day to connect the US and Mexican economy.
La Red is the busiest port in the United States, a car component, gasoline, avocado, and computer conduit. “I can't choose it anymore,” Nixon said about the US and Mexican economy. He said that the 30 -year economic integration under the free trade agreement has always understood and measured, “he said,” he said.
As something is imminent, 25 % of tariffs on Mexico products. President Trump will be imposed on Saturdays to apply more to control illegal immigrants on Saturdays. Mr. Trump is also hoped that he will attack Canada with 25 % of tax and impose 10 % tax on imports in China.
Trump, a long -standing prosperity and critic of free trade transactions, seems to be afraid of overturn the closest economic relationship in the United States. He focuses on strengthening the border between illegal immigrants and Fentanyl flow. This is the two areas that I frequently spoke during the 2024 campaign.
But the president has Mexico and other beef. This includes economic competition brought to US workers. President and his supporters believe that imports and steel from Mexico have weakened US manufacturers. They say that the United States and the Mexican Canada agreement, Trump, signed a trade contract in 2020 to replace the North American free trade agreement.
Many companies say that they have a deeply running country relationship that most Americans recognize, and a tariff -like policy that tries to cut them is painful. Among the major economic partners in all the world, the United States and Mexico are the most integrated ones linked by business, trade, tourism, family connection, remittance, and culture. It can cause complaints and efforts to keep the relationship away, but it is intimacy to bring a lot of profits.
“We have a symbiotic relationship in our country,” said Juan Carroslodriguez, one of the world's largest commercial real estate companies, the manager of Tiffana, a Tiffana of Cruhman & Wake Field.
“Our economy is very intertwined, so it will take decades to separate,” said Rodriguez. “Such a scenario will have a catastrophic impact on Mexico.”
Mexico dates back to the 1960s, when manufacturers began to open factories across borders to respond to the cost of climbing in the United States and Japan.
Trade was taken up when NAFTA was enforced in 1994. For many Americans, the trade agreement is now synonymous with the town of offshoring and settled factory. However, economists calculate that many parts of the United States have benefited as agreements increase trade and economic activities.
As in the northern part of the industry, other areas in the United States were severely hurt because the manufacturers moved to Mexico in search of cheaper labor. The town of the factory was overtaken, helping to promote the rebound of trade and open the way for trade candidates like Trump to acquire the office.
In an interview, Peter Navaro, a senior counselor of the trade and manufacturing president, called NAFTA a “catastrophe” and was bad for both Mexico and the United States.
“The fact that China was so bad that people tend to forget how bad the nafta was,” he said.
In his first term, Trump threatened Mexico's tariff over the border issue, but settled on transactions. He also threatened to withdraw from NAFTA repeatedly, but decided to re -negotiate it. Some of his advisers have added a provision to the agreement they believed to strengthen the production of steel and cars in the United States, but they are now lacking.
Since Trump was the last in the White House, Mexico's importance to the US economy is growing. The COVID-19 pandemic confused the global supply chain and started a “close director” boom.
Companies have already wanted to move from China to avoid the tariffs imposed by Trump and to avoid rising costs and political risks. Manufacturers rushed to open plants in Mexico, seizing the country's low -cost industrial bases and the proximity to the United States.
These changes have helped Mexico to become a top trading partner in the United States in 2023. With the expansion of trade between countries, Trump's two -country trade deficit with Mexico, Mexico, is particularly focused on.
American consumers may depend on foreign products as before. However, economists argue that imports from Mexico may have a completely different meaning from imports from China.
That's because there are many integrated supply chains that run back and forth over the North American border. Products such as cars, electronic equipment, and blue jeans are converted from raw materials to parts and final products, so they come and go between the United States, Mexico and Canada.
According to S & P Global economists, more than 18 % of imports in the United States from Canada and Mexico were born in the United States and sent to these countries. It is a sign of how closely the economy is integrated than the proportion of other countries.
Provision creates other benefits. A study by the Dallas Federal Bank has shown that Mexico's Siudadov Aresless factory output has increased by 10 %, the total employment of El Paso, Texas has increased by 2.8, and is concentrated in transportation and other areas. And real estate.
“I have this perception that all borders are related to the walls and illegal crossing,” said Diegosolórzzano, the founder of Desteia, a founder of Desteia, which supports companies that make decisions. “This line in the sand is actually the most powerful economic corridor on the earth.”
Last year, about $ 800 billion of products were transported across borders, Solorzano said that it was the amount to place US borders at a remarkable distance of the world's 20 economies.
The two economys depend on each other with energy needs. Mexico, which depends on the estimated 70 % of natural gas consumption, is more vulnerable to any confusion.
However, the United States also imports about 700,000 barrel oil per day from Mexico. Energy analyst warns that imposing imported taxes to such cargo could cause fuel prices, especially diesel rise.
Food production is also integrated closely. Mexico supplies about half of the fresh fruits and vegetables in the United States, and the proportion has risen in a few months in winter. Last year, Mexico appeared as a top market for agricultural exports in the United States, with a total of $ 30 billion.
Bob Hemesus, a fifth -generation farmer in the northeastern part of Iowa, said that Mexico was the largest buyer in the United States, and both were large -scale buyers of pigs.
The customs duties said, “We will spend extra costs on products that do not need to be there, and those countries will rush to see somewhere else,” said Hemesus. He talked from the farm on a warm day on a warm day.
“It is an economic disadvantage as a farmer,” he said. “I want to use tariffs as a negotiating tool, but what kind of harm do you do?”
Some Trump officials believe that corn exports are completely benign. Navaro stated that NAFTA has started kicking the US illegal immigration issue. Because when the United States began exporting corn in Mexico after the trade agreement came into effect, he drove Mexican agricultural workers from work and sent some of them to the United States.
“Once it has begun, our illegal immigration issues,” he said.
Trade stimulation
Trump and his supporters have other criticisms about the relationship between the United States and Mexico. Some claim that some people violate the conditions of the agreement that Mexico had made to restrict steel exports to the United States. They say that the shipment of steel to Mexico to the United States has exceeded the level set by the contract signed with USMCA.
(There is a unique complaint in the Mexico steel industry. On Tuesday, Kanacero, a Mexican steel organization, claimed that exports of completed steel products from the United States, which were not compliant with the statement, had increased significantly. 。
In particular, concerns about Mexico trade with China in the automotive department are increasing. China's exports to Mexico are increasing rapidly, and some Chinese automobile companies are looking for a Mexican factory site.
This is promoting concerns that Chinese companies will use them as a point to fly Mexico to export them to the US market at a much lower tariff fee than when Chinese companies are shipping products from China. 。
“There is absolutely a problem in the automotive sector,” said Brad Sessa, an economist at the Diplomatic Council, as an exaggeration of Mexico as a Chinese product to the United States. He said one of the three cars sold in Mexico last year came from China. In other words, exports in China are not exports from the United States, but have met Mexico's demand for cars, and has hit the US car industry.
Other employers argue that the United States and Mexico should cooperate to restrict imports from China, but they do not need high tariffs on Mexico products.
Greg Owens, the highest executive officer of Cheryl Manufacturer, a Sheryl manufacturer in Sheryl, New York, wants to see the structured tariffs inhibiting China from using Mexico as a backdoor to the United States. I said. However, he opposes that China is a much greater threat and completely puts tariffs on Mexico.
“China packs plates in Guangzhou and establishes a store in Mexico just to avoid tariffs. It needs to deal with it,” he said. “But you can't destroy trade relationships with Mexico.”
