Treasury Department Assures There Will Be No Tariff Conflicts with the U.S.
Edgar Amador Zamora, who has been appointed as the Secretary of Treasury, rejected the possibility of Mexico and the United States entering into a tariff war. “I believe that a tariff war will not occur, we are backed by a strong trade framework and a solid fiscal policy, which will help us avoid any instability,” commented the official during his meeting with the press after appearing before the Finance Committee of the Chamber of Deputies to be confirmed as the head of the Ministry of Finance and Public Credit (SHCP).
The arrival of Donald Trump to power in the U.S. has marked a period of negotiations for Mexico on issues of migration, security, and trade, amidst threats of tariffs from the U.S. president. So far, the implementation of taxes on Mexican products has been suspended, and it is expected that tomorrow, Mexico's president, Claudia Sheinbaum, and the Secretary of Economy, Marcelo Ebrard, will announce the details regarding taxes on steel and aluminum, as well as the progress in discussions leading up to April 2, when the U.S. will impose reciprocal tariffs on all countries. “We are convinced, as the president has indicated, that respecting the North American trade treaty, which is still in effect, is the foundation of our trade relationship (…) this is the way we must act. We will continue to insist and engage in dialogue,” expressed the official during his testimony. In this circumstance, the Mexico Plan and the investment strategy will become increasingly important in the long term, as there are intentions to reduce imports. Despite Mexico's significant import and export activity, most of what it sends abroad comes from other countries, commented Amador Zamora, who anticipates being confirmed and officially assuming his role along with Carlos Lerma as Undersecretary of Revenue and Roberto Carlos Fernández González as Federal Treasurer. Amador Zamora emphasized that, amidst tariff uncertainty, the peso has maintained its stability thanks to the flexible exchange rate. “I believe that the stability of our currency should give us peace of mind; as you know, we have a flexible exchange rate regime, which means that neither the government nor the central bank sets targets (…) there have been no disruptions in the Mexican exchange market, and that generates stability in times of volatility,” he assured.
Economic stability in an uncertain global environment, like the one we currently face, requires a constant focus on negotiations and strengthening trade agreements. Additionally, the flexible exchange rate environment mentioned by Amador Zamora is vital for mitigating risks and providing support for exports, which can ultimately benefit the Mexican economy in the long run.
