Trump’s Tariff Threats Throw Mexico-US Trade Deal into Chaos – What’s Next?

Les menaces tarifaires de Trump secouent l'accord commercial Mexique-États-Unis

Le spectre de nouvelles taxes douanières plane sur les échanges transfrontaliers, créant des vagues d'incertitude dans les marchés financiers. Les analystes s'interrogent : s'agit-il d'une manœuvre politique ou d'une véritable bombe économique ?

Les entreprises des deux côtés de la frontière se retrouvent prises en étau entre géopolitique et profit. Certaines commencent déjà à restructurer leurs chaînes d'approvisionnement – quand d'autres parient sur le bluff habituel de Wall Street.

Pendant ce temps, les traders forex surveillent le peso mexicain comme des vautours, prêts à se jeter sur la moindre fluctuation. Parce qu'en finance internationale, une crise pour les uns signifie toujours opportunité pour les autres.

Et comme d'habitude, ce sont les petits exportateurs qui trinqueront pendant que les multinationales trouveront bien quelque niche fiscale pour contourner les règles. Business as usual.

Mexico-US trade agreement faces growing uncertainties amid Trump’s tariff threats 

Washington had earlier announced plans to impose a 17% duty on fresh tomatoes imported to the US from Mexico. This did not please Mexico’s president. Respondingly, Sheinbaum hoped to make known the measures the country would take, including for tomato farmers, to counter the tariff threat.

Sheibaum stated that they believed they could reach an agreement with the US. However, based on her argument, it was essential to have a backup plan since they needed to get ready for all possibilities.

Notably, Mexico is pivotal in importing fresh tomatoes to the US. According to data from sources, the country imports approximately two-thirds of the fresh tomatoes consumed in the US.

In the meantime, the US Commerce Department announced a cancellation of a 2019 trade agreement with Mexico that ended an investigation on Mexico’s countervailing duty. This amounted to a valuation of $3 billion of Mexican exports to the US annually.

Mexico’s tomato export agreement was first made in 1996, whereby the two governments vowed to control it and resolve US allegations against Mexico concerning “unfair trade” practices. The agreement was updated six years ago to stop an investigation into dumping and settle tariff issues.

On the other hand, trump is still focused on striking as many trade deals as possible, and he pledges to impose his threatening tariffs on nearly all of his trading partners.

Mexico vows that no other country can substitute Mexican tomatoes in the US market 

Following the US’s assertion to withdraw from the tomato agreement with Mexico, Mexico demonstrated strong confidence in renewing the agreement.

The economy and agriculture ministries considered the 17.09% duty on Mexican tomatoes imported to the United States unfairly “underpriced.” Based on their argument, it did not favour Mexican producers and the US industry’s interests.

To curb this, the Mexican government intends to support its tomato farmers and expand its market overseas as it negotiates a deal to strip out the tomato duty.

A coalition of five Mexican agriculture associations, including representatives from Baja California and Sinaloa states, said they would work with the Mexican government to develop more solutions to the problem.

They acknowledged that no other country can substitute Mexican tomatoes in the market, which they have developed through hard work and creativity over the last 120 years.

US Commerce Secretary Howard Lutnick shared his view on the topic of discussion. According to Lutnick, unfair trade practices have hurt their farmers by lowering the prices of their crops, such as tomatoes.

Trump reveals plans to impose a 10% tariff rate on smaller US trade partners

US President Donald Trump recently announced that letters with trade agreement terms and tariff rates will be sent to smaller US trade partners before the August 1 deadline. He hinted at a 10% tariff rate on these countries.

After attending an event in Pittsburgh, Trump mentioned that he was pleased with simple agreements. This came after the announcement unveiled that nearly 20 nations have already been subjected to tariff rates, as other countries were next in line.

Afterward, Trump said they would send out a letter soon addressing tariff rates for several smaller countries. According to him, they will likely establish one tariff for all of them, probably just above 10%.

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