Is Mexico Charting A New Trade Path Beyond US Borders?
Mexico’s government has reportedly taken a significant step in reshaping its global trade strategy, moving decisively beyond its historical reliance on the US and exploring new partnerships abroad.
President Claudia Sheinbaum allegedly announced that her administration intends to sign a new trade agreement with the EU and is looking to “further diversify our trade to other ex-US partners.”
Her message follows the country’s favorable treatment under the USMCA, which protected Mexico from a sweeping set of tariffs recently imposed by President Donald Trump.
Sheinbaum characterized the preferential status as a major benefit for the Mexican economy, emphasizing that it represents “the good relationship that we’ve built between the Mexican and US governments.”
Those ties—now formalized by the USMCA—have shielded Mexico from higher tariffs while other global players, including China and the European Union, faced steeper levies under the new U.S. trade regime.
Following Trump’s tariff announcement, the Mexican peso strengthened by nearly 1.3% in afternoon trading, marking its best performance since November 2024. The main stock index also climbed 0.65%, the best daily performance among a broad basket of equity markets.
Economy Minister Marcelo Ebrard hailed Mexico’s exclusion from the tariffs as “a great achievement,” affirming that the USMCA “has outlived this new trade regime.” He further noted that Mexico’s objective over the next 40 days is “to achieve the best trade conditions possible.”
Nonetheless, Sheinbaum’s administration remains keenly aware of the nation’s vulnerability to US policy shifts, as nearly 80% of Mexico’s exports are still US-bound. The president revealed plans to publish decrees strengthening the local auto, steel, and aluminum sectors, a move designed to safeguard key industries from external turbulence.
Her government also launched “Plan Mexico,” featuring 18 initiatives aimed at fortifying the country’s national economy in ways that reduce long-term reliance on any single partner.
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