The president of Mexico, Claudia Sheinbaum, acknowledged this Friday that it is “complex” to negotiate with President Donald Trump due to his protectionism and his tariff policy, after Washington approved new taxes on exports from 60 countries under the argument of forced labor.

Trump changes world trade

Trump "completely changes the world dynamics. He has a vision of reindustrializing the United States. That the manufacturing that left the United States, mainly to China, to other countries in Asia and also to Mexico, Canada and other countries, returns to the United States," the president explained in her daily conference.

This statement from Sheinbaum, in the central state of Morelos, comes after the US announced new tariffs under Section 301 of the Trade Act of 1974, with the argument of fighting forced labor globally.

In the case of Mexico, a 10% tax is applied to its exports.

Despite Washington's protectionist vision, Sheinbaum said that “it is difficult for all of that industry to return to the United States,” while claiming the “very large” economic link that North America has, which “is very difficult to separate.”

“It cannot be that in the bilateral relationship of neighbors, even beyond trading partners, the well-being of one country is sought against the non-well-being of another (…) The prosperity of Mexico helps the United States, the prosperity of the United States helps Mexico,” he argued.

Mexico maintains advantages of the T-MEC

Regarding the new tariffs, the Mexican president confirmed that the country and its trade relationship with the US “remains the same” by highlighting that all products within the Treaty between Mexico, the United States and Canada (T-MEC) will continue to have “zero tariffs.”

Regarding her meeting at the National Palace with the United States trade representative, Jamieson Greer, the president described it as a “very good” conversation in which they are “progressing” on different issues regarding the review of the T-MEC, which Washington refuses to extend in its current terms.

Sheinbaum explained that he raised with Greer the need to promote “greater rules of origin,” while his Administration is seeking to renew the trade agreement “so that the treaty can be even longer than 10 years.”

Review of the treaty advances

This visit by the US negotiator to Mexico is the third round of bilateral talks on the USMCA, the first since Washington decided not to automatically extend the treaty for another 16 years and opted for a scheme of annual reviews until 2036.