{"id":47090,"date":"2025-07-30T08:24:07","date_gmt":"2025-07-30T08:24:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/47090\/"},"modified":"2025-07-30T08:24:07","modified_gmt":"2025-07-30T08:24:07","slug":"mexico-scrambles-to-avoid-another-tariff-increase-as-texas-businesses-watch-nervously","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/47090\/","title":{"rendered":"Mexico scrambles to avoid another tariff increase as Texas businesses watch nervously"},"content":{"rendered":"

Sign up for\u00a0TPR Today<\/a>, Texas Public Radio’s newsletter that brings our top stories to your inbox each morning.<\/p>\n

Tariffs of 25% on steel and aluminum imports from Mexico went into effect on Monday. If a deal is not struck by the end of the week, 30% tariffs could be imposed on more industries on Friday.<\/p>\n

Texas businesses are watching closely. Nearly a third of the state’s global commerce is conducted with Mexico, and the region has become a tightly woven production ecosystem.<\/p>\n

\u201cWhat Texas and its neighboring Mexican states built over the past few years is a joint production platform, meaning they don\u2019t just trade with each other \u2014 they build things together,\u201d said Diego Marroqu\u00edn, a trade expert with the Wilson Center.<\/p>\n

Texas has evolved into the main artery of U.S.-Mexico trade. That platform includes everything from auto parts and electronic components to agricultural products like berries and avocados.<\/p>\n

The Port of Laredo, which in recent years surpassed California\u2019s ports to become the busiest in the U.S., embodies this integration. Trucks cross the border daily carrying partially assembled goods that will be finished on the other side. Those goods are then shipped to markets across North America and beyond.<\/p>\n

The 30% tariff, if enacted, could damage the automotive industry, which is especially vulnerable. A single vehicle may contain components that cross the border multiple times during production. A tariff at every crossing could make entire operations financially unviable.<\/p>\n

Tariffs are not new in U.S.-Mexico relations, but the current situation is different, analysts said, because of how tightly linked the two economies have become. Joint ventures are now the norm. A car made in Texas might include engines from Saltillo and wiring systems from Chihuahua. Blueberries grown in Michoac\u00e1n are processed in McAllen. Cattle raised in Coahuila are slaughtered and packed in Laredo.<\/p>\n

Tariffs could disrupt the logistical setup of North American manufacturing.<\/p>\n

\u201cTariffs are detrimental to the U.S. economy, to the region\u2019s competitiveness, and they increase prices across the joint production platform,\u201d Marroqu\u00edn said. \u201cThey also violate the spirit of the USMCA trade agreement, making future collaboration harder.\u201d<\/p>\n

Right now 25% tariffs with Mexico are in effect. That goes up to 30% on Friday. And many people are “Tariff-ied” about what it could do to the San Antonio economy. Job losses, higher prices, and reduction in investment are scenarios that are in the cards. Mexico is looking to make a deal but there\u2019s no sign of reaching a compromise in the near term.<\/p>\n

The USMCA, which replaced NAFTA in 2020, was intended to provide long-term stability and modernize trade rules between the U.S., Mexico, and Canada. It is up for \u201creview\u201d in 2026. But Marroqu\u00edn said the recurring threats of tariffs and the politicization of trade may make July 1, 2026, a \u201crenegotiation.\u201d<\/p>\n

Beyond the direct economic impact, business leaders are feeling the pressure of uncertainty across the region slowing investment. If companies don\u2019t know what tariff rates will be in a month, or in the coming days, they can’t make informed decisions about where to build new plants or expand production.<\/p>\n

\u201cIt\u2019s basically impossible to plan an investment in a tire factory in Texas or an electronics plant in Nuevo Le\u00f3n if you don\u2019t know what the tariff rate will be tomorrow,\u201d Marroqu\u00edn explained. \u201cRight now, we have a 25% tariff, but it might rise to 30% on Aug. 1 or change again two months later \u2014 or after a tweet.\u201d<\/p>\n

The uncertainty is particularly costly in Texas, where small and medium-sized businesses are deeply involved in cross-border trade. These types of businesses do not have the resources to absorb sudden cost hikes or reconfigure supply chains quickly.<\/p>\n

Mexican President Claudia Sheinbaum has called the tariffs \u201cunjustified\u201d and warned that Mexico will issue retaliatory tariffs if a resolution is not reached by the Aug. 1 deadline.<\/p>\n

On July 12, President Donald Trump sent a letter to the Mexican government, which he also posted on Truth Social, claiming Mexico wasn\u2019t doing enough to stop fentanyl trafficking.<\/p>\n

As the two countries negotiate, tariffs on tomatoes as well as steel and aluminum have taken effect over the last two weeks.<\/p>\n

\u201cThe main objective of the Mexican government right now is to negotiate a tariff level that\u2019s fixed,\u201d Marroqu\u00edn explained. \u201cThat would at least allow businesses to plan.\u201d<\/p>\n

If the additional tariffs go through, experts said U.S. consumers will feel the impact of higher prices for cars, groceries, and household electronics within weeks.<\/p>\n

In the longer term, the credibility of the USMCA is on the line \u2014 and the sustainability of the interconnected production system both countries have spent decades building.<\/p>\n

Whether a deal is reached by Friday or not, Marroqu\u00edn said tariffs are now a part of that equation. \u201cI don\u2019t think tariffs are going away,\u201d he said. \u201cI think tariffs are the new normal.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Sign up for\u00a0TPR Today, Texas Public Radio’s newsletter that brings our top stories to your inbox each morning.…\n","protected":false},"author":2,"featured_media":47091,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-47090","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/47090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=47090"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/47090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/47091"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=47090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=47090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=47090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}