New U.S. tariffs on Mexican steel and aluminum products are sparking fresh trade uncertainty between the two neighbors, with Mexico accelerating efforts to diversify its economic partnerships. The move by Washington targets a sector responsible for nearly $15 billion in annual bilateral trade, prompting concerns about supply chain disruptions and inflation risks.
Mexico's Economy Ministry announced plans to court foreign investment across Latin America this week, focusing on advanced manufacturing and green energy projects. Analysts suggest this strategy aims to reduce reliance on U.S. markets while capitalizing on nearshoring trends brought by recent global supply chain realignments.
The tariff escalation comes as North American automakers face component shortages, with industry leaders warning of potential price hikes for vehicles across the continent. Meanwhile, Mexico's central bank revised its 2024 GDP growth forecast downward by 0.8% amid the trade volatility.
Reference(s):
cgtn.com
