Latest news with #UnitedStates-Mexico-CanadaTradeAgreement
Yahoo
28-03-2025
- Automotive
- Yahoo
Trump's tariffs weigh heavily at Mexico manufacturing trade show in El Paso
Donald Trump's impending United States' tariffs against Mexico imports and on auto industry imports in particular hung heavily over a manufacturing trade show that wrapped up late this week in El Paso. 'There's a lot of uncertainty' because of the tariffs' cloud, Margarita Licon, El Paso district sales manager for Expeditors, a large international warehouse operator and logistics company with 11 El Paso warehouses, said at the company's booth at the El Paso convention center. 'A lot of companies are waiting to make decisions' about expansions and other projects, she said — a sentiment echoed by suppliers and others tied to Mexico factories at Mexico's Manufacturing Supply Chain Summit. The annual trade show is organized by Mexico Now, a trade publication for Mexico's manufacturing industry. Alan Russell, CEO of El Paso's Tecma Group of Companies, during a trade-show discussion, said he advises his clients to not wait "on the politicians to make your decisions, or you are going to be left behind." Tecma establishes maquiladoras, or factories, in Mexico for companies in the U.S., and elsewhere. U.S. manufacturers continue moving factories to Juárez because they can't find workers in their hometowns, Russell said. Oscar Dominguez, president of Lear Mexico Operations, said Mexico's automotive industry has a large, experienced workforce that can't be overlooked in companies' location decisions, even if U.S. tariffs are implemented. Lear is a global supplier of automotive seats and automotive electrical and electronic systems. That workforce has helped Mexico become a large auto-manufacturing center, Dominguez said. He and three other experts on the Mexico automotive industry took part in a panel discussion at the trade show. More: Trump's tariffs: What does it mean to be made in America? Mexico is the seventh-largest auto producer in the world, with most of the vehicles exported to the United States, said Thomas Karig, an independent manufacturing consultant and former Volkswagen of Mexico executive. It also is a large producer of components put into motor vehicles. Juárez, just across the border from El Paso, is the second-largest auto-parts producer in Mexico, according to data the city of Juárez reported at the trade show. Juárez has about 400 companies in the automotive manufacturing industry with about 180,000 employees, the Juárez data show. If Trump's announced 25% tariffs on auto imports takes effect April 2 as now scheduled, it definitely will impact companies in Mexico's automotive industry, Dominguez said. "I don't think companies (auto manufacturers) will be able to absorb all that cost," and that will result in negotiations between suppliers and the auto manufacturers, and result in suppliers and consumers having to pay higher prices, he said. Even if some auto components covered under the United States-Mexico-Canada Trade Agreement, or USMCA, are exempted from tariffs, as has been indicated by the Trump administration, many parts will still be subject to the tariffs, he said. Luis Gonzalez, vice president of Textape Inc., an El Paso company that produces tape used to cover automotive wiring made in Mexico, said one of his concerns is that Textape will have to absorb the tariffs' costs because, he said, automotive manufacturers don't like to accept price increases. Other tariffs also may be implemented by the U.S. against Mexico. Trump on March delayed implementing a 25% tariff on a broad array of Mexican imports. And steel imports from around the world, including from Mexico, are subject to 25% tariffs by the U.S. Trump also has said the U.S. will impose reciprocal tariffs April 2 on imports from countries that charge tariffs on U.S. exports. Lear's Dominguez said the tariffs against Mexico appear to be the Trump adminstration's way to set the stage for negotiations of a new USMCA. The trade agreement is scheduled to go under renegotiation in 2026. Salomon Noble, CEO of Intermex Industrial Parks, said he's certain Trump is using tariffs as a negotiating strategy to make what he called, USMCA 2.0, "more strigent and stronger," which he foresees will make the U.S. and Mexico better allies. Intermex is a large industrial park developer in Mexico and also helps companies establish factories in Mexico El Paso Mayor Renard Johnson, in a short speech to the trade show, said geopolitical shifts, tariffs, disruptions in logistics, and other factors have brought a transformative moment in global trade, including for this binational manufacturing region. "Rethinking supply chain is no longer an option, it's imperative," Johnson said. Vic Kolenc may be reached at 915-546-6421; vkolenc@ @vickolenc on Twitter, now known as X. More: Austin firm plans $5B high-tech campus in Santa Teresa, NM, create 1,000 jobs This article originally appeared on El Paso Times: Trump's tariffs weigh heavily at El Paso manufacturing trade show
Yahoo
06-03-2025
- Business
- Yahoo
Stocks fall as markets grapple with Trump's rapid shifts in tariff policy
Stocks fell Thursday afternoon as President Donald Trump's pledge to temporarily exempt many imports from his 25% tariffs failed to deter a wider sell-off. The S&P 500 closed down 1.8%, while the tech-heavy Nasdaq declined 2.6% and is now down more than 10% from its recent all-time high. The Dow Jones Industrial Average fell more than 400 points, or about 1%. The major averages have each lost about 3% this week, with the broader S&P 500 now having erased the gains it accrued since Trump won November's election. That index is off 6% from its all-time high in January, the month he took office. Trump on Thursday blamed 'globalist countries and companies that won't be doing as well' for the sell-off, and also said he wasn't paying attention to the stock market. 'I think it's globalists that see how rich our country's going to be and they don't like it. Big market out there. But again, they've been ripping off this country for years. And they're going to do great — everyone's going to do great. But we can't let this continue to happen to America. Otherwise we're not going to have a country any longer.' The drawdown reverses a short-lived rally Wednesday following the Trump administration's announcement that autos from America's largest manufacturers would be exempted from the 25% tariffs he unveiled on Canada and Mexico. Earlier Thursday, Trump announced all Mexican goods covered by the United States-Mexico-Canada Trade Agreement, the successor pact to NAFTA that his first administration negotiated, would not face the duties for a month. He later clarified that USMCA goods from Canada would also be covered by the one-month exemption. That failed to calm a market already primed to be dragged down by a separate development in the artificial intelligence space. Fresh earnings from California-based chipmaker Marvell Technology indicated a possible slowdown in the race among major tech firms to develop advanced AI systems. Meanwhile, signs of a more significant economic weakening continue to mount. On Thursday, the Challenger, Gray & Christmas consultancy reported that February saw the most job cuts announced in a single month since the early days of the pandemic, as the massive cuts called for by Elon Musk's DOGE project began to take effect. That data followed findings from private payroll processor ADP Wednesday that showed far fewer jobs added than forecast last month. Speaking to reporters from the Oval Office on Thursday afternoon, Trump claimed he wasn't paying attention to the stock market, while also blaming the sell-off on "globalists." Still, the Challenger report also showed steady hiring continued in a number of industries, despite the losses. The Bureau of Labor Statistics is set to report official jobs figures for February on Friday morning. Forecasters expect to see about 170,000 payrolls added, which would be more than the 143,000 job gains in January. This article was originally published on
NBC News
06-03-2025
- Business
- NBC News
Stocks fall even as Trump gives Mexico a one-month reprieve from tariffs
Stocks fell Thursday afternoon as President Donald Trump's pledge to temporarily exempt many Mexican imports from his 25% tariffs failed to deter a wider selloff. The S&P 500 was down as much as 2.1%, while the tech-heavy Nasdaq declined 2.8%. The Dow Jones Industrial Average fell approximately 500 points, or 1.4%. The major averages have each lost more than 3% this week, with the broader S&P 500 having now erased the gains it accrued since Trump won November's election. That index is off 6% from its all-time high in January, the month he took office. Thursday's action marks a reversal of a short-lived rally Wednesday following the Trump administration's announcement that autos from America's largest manufacturers would be exempted from the 25% tariffs he unveiled on Canada and Mexico. On Thursday, Trump announced all Mexican goods covered by the United States-Mexico-Canada Trade Agreement, the successor pact to NAFTA that his first administration negotiated, would not face the duties for a month. That failed to calm a market already primed to be dragged down by a separate development in the artificial intelligence space. Fresh earnings from California-based chipmaker Marvell Technology indicated a possible slowdown in the race among major tech firms to develop advanced AI systems. Meanwhile, signs of a more significant economic weakening continue to mount. On Thursday, the Challenger, Gray & Christmas consultancy reported that February saw the most job cuts announced in a single month since the early days of the pandemic, as the massive cuts called for by Elon Musk's DOGE project began to take effect. That data came followed findings from private payroll processor ADP Wednesday that showed far fewer jobs added than forecast last month. Still, Challenger report also showed steady hiring continued in a number of industries, despite the losses. The Bureau of Labor Statistics is set to report official jobs figures for February on Friday morning. Forecasters expect to see about 170,000 payrolls added, which would be more than the 143,000 job gains in January.
Yahoo
06-03-2025
- Business
- Yahoo
Idaho U.S. Sen. Crapo blocks tariff bill days before Trump imposes tariffs on Canada, Mexico
U.S. Senate Finance Committee Chairman Sen. Mike Crapo (R-ID) (R) and Ranking Member Sen. Ron Wyden (D-OR) preside over a meeting as the committee votes to advance the nomination of Robert F. Kennedy Jr. to be the next Secretary of Health and Human Services on Feb. 4, 2025, in Washington, D.C. The full committee voted along party lines to advance the nomination to the entire Senate for confirmation. (Photo by) This story was first published by Idaho Reports on March 5, 2025. U.S. Sen. Mike Crapo, R-Idaho, blocked a bill Feb. 27 that would have prevented the president from imposing tariffs without Congressional consent on countries that are allies of the United States, calling the proposal 'too blunt of an instrument when nuance is called for.' The move came just days before President Donald Trump imposed 25% tariffs on nearly all products imported from Canada and Mexico, the United States' biggest trading partners, prompting the two countries to say they would impose their own retaliatory tariffs on American products. The U.S. Senate bill, sponsored by U.S. Sen. Chris Coons, D-Delaware, would have required Congress to sign off before a president could impose tariffs on free trade partners or allies. Coons asked for unanimous consent to pass the bill during a Feb. 27 floor session, but Crapo, chairman of the Senate Finance Committee, blocked the request. During his remarks on the Senate floor, Crapo said he agrees with Coons on several trade issues, including the need for the United States to negotiate more free trade agreements like the United States-Mexico-Canada Trade Agreement, or USMCA. 'I also agree that we should not undertake tariff actions lightly, on our allies or on free trade agreement partners,' Crapo continued. 'We should, however, take care before we say that all options are completely off the table. In fact, all of our free trade agreements provide exceptions for when parties can remove economic benefits, including on national security grounds.' Trump has repeatedly cited the flow of fentanyl into the United States as the reason for imposing tariffs on Canada and Mexico. While authorities seized more than 21,000 pounds of fentanyl at the southern border during the 2024 fiscal year, they discovered just 43 pounds of fentanyl at the Canadian border, seizing less than a pound some months, according to U.S. Customs and Border Patrol. As of the end of January, authorities have seized only 10 pounds of fentanyl at the Canadian border for the 2025 federal fiscal year, which runs from October through September. 'Tariffs are appropriate tools if used in the right way, and can be a useful means of balancing unfair trade practices and opening foreign markets to U.S. exports,' Crapo wrote in an email comment to Idaho Reports. 'We want to avoid any unnecessary actions that would harm families recovering from four years of inflation under the previous Administration. President Trump makes a strong case that his tariff policies and other economic reforms will recover our economy from the Biden era's mistakes.' This isn't the first time in recent months Idaho's senior U.S. senator has mentioned tariffs. According to Politico, Crapo took a 'cautious stance' on tariffs during a December Senate Finance Committee hearing, saying he wanted to hear more about Trump's plans before attacking them. 'I think that we all agree that tariffs are appropriate tools if used in the right way, and we all agree that there is a wrong use of tariffs, and we'll get into that as we move through the next three or four years,' Crapo said. During a February nomination hearing for the now-confirmed United States Trade Representative Jamieson Greer, Crapo mentioned the importance of having someone in the USTR position who could report to Congress on international trade issues, especially when the president imposes tariffs. 'The executive orders (on tariffs) rely on the International Emergency Economic Powers Act, or IEEPA, and concern drug policy and border security. The President, not USTR, invokes IEEPA, and the Department of Homeland Security, not USTR, is responsible for securing our borders,' Crapo said during the hearing. 'What the president has done that is different, though, is bringing tariffs into the discussions about border security,' Crapo said. 'USTR is… America's chief trade negotiator. Any time the U.S. government is considering tariffs or something that implicates trade policy, (the trade representative) should be part of those conversations, and report to us about those conversations and solicit our input.' Also in February, Crapo published a column outlining trade policy priorities, including negotiating trade agreements that are fair to the United States and help Idaho producers. 'The United States must resume negotiating real, comprehensive trade deals that expand market access for Idaho producers, protect Idaho interests competing abroad and thoughtfully reduce those tariffs that help our manufacturers, businesses and consumers,' Crapo wrote. In 2018, during the first Trump administration, Idaho producers lost millions due to retaliatory tariffs from Mexico: An estimated $15.4 million in potato exports under a 20% tariff, $14.4 million in cheese and whey due to the 25% tariff, and $1.1 million in export revenue from pork and ham due to an added 20% tariff, said Fabiola McClellan, then-head of Idaho's Mexico City-based foreign trade office, in a February 2019 press release. Mexico put those tariffs in place in response to the United States placing tariffs on steel and aluminum from Canada and Mexico. The same press release said overall exports from Idaho to Mexico stayed steady in 2018. 'We are very relieved to see that the numbers have somehow remained even,' McClellan said at the time. 'And a lot of that is due to hardworking Idaho companies. … We need to protect our market down there very carefully.' The United States reached a deal with both Canada and Mexico in May 2019 to remove retaliatory tariffs. Currently, Canada is Idaho's top export partner, with exports to the country totaling almost $1.5 billion in 2023, the most recent year for which data is available. Food and agriculture products accounted for one fourth of that total, at $383 million, according to the Idaho Department of Commerce. Idaho also imports a number of goods from Canada, including $360 million worth of food and agriculture products in 2023, and $272 million in wood, pulp and paper products. In 2023, Idaho imported nearly $169 million worth of goods from Mexico, with food and agriculture accounting for about $68 million of that total, as well as $61.5 million of transportation equipment, according to the Department of Commerce. Mexico is Idaho's third largest export partner, with exports to Mexico totaling $284 million in 2023. Food and agriculture accounted for 88% of Idaho's exports to the country. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
