U.S. tariffs on Mexico: impact on the industrial and electrical sectors

The imposition of tariffs by the United States on Mexican products has caused concern in various sectors of the national economy, particularly in the electrical and energy industries due to their high dependence on imported inputs and technologies.

Although Mexico has managed to avoid some reciprocal tariffs thanks to the United States-Mexico-Canada Agreement (USMCA), the application of 25% tariffs on certain products and materials represents a challenge for the competitiveness and operation of Mexican companies.

What are tariffs and how do they affect imports between the United States and Mexico?

Tariffs are taxes imposed on imported goods. Their main purpose is to make foreign products more expensive in order to protect domestic production and promote local industry. According to data from the Bank of Mexico, in 2024 alone, more than 80% of Mexican exports went to the United States.

Since April 2025, tariffs of up to 25% have been in effect on imports from Mexico, as established by the US government. This mainly affects industrial and energy products, particularly automobiles, auto parts, steel, and aluminum. This tariff measure affects Mexico on three key fronts:

1. Loss of competitiveness due to the increase in the final price of products: Mexican companies that export to the United States are forced to raise the prices of their products compared to those of other countries, which reduces demand in the importing country.
2. Barriers to binational supply chains: the measure could lead to a decline in production, investment, and employment, affecting the economic integration forged over decades under trade agreements such as the United States-Mexico-Canada Agreement (USMCA).
3. Delaying energy infrastructure projects: these tariffs raise import costs, make inputs more expensive, and affect the supply chain between the two countries, directly impacting industrial and electrical sectors that depend on imported components and technology.

U.S. tariffs on Mexico for the industrial sector

Industrial sectors such as steel and manufacturing in Mexico are among the most interconnected with the US economy. According to the National Chamber of the Iron and Steel Industry (CANACERO), 75% of Mexican steel exports—valued at approximately $2.1 billion—are at risk due to these new tariffs.

Similarly, automotive manufacturing, electronic component production, and machinery imports are also impacted, causing some companies to seek alternative suppliers in other regions or even consider relocating their operations, although this involves significant costs and time. On the other hand, it may discourage foreign direct investment (FDI) in Mexico, as companies perceive greater risk and lower profitability for their operations destined for the United States.

US tariffs on Mexico for the electricity sector

Although the electricity sector is not directly mentioned in the tariff discussions, its dependence on imported equipment, technology, and components—many of them from the United States—makes it vulnerable, affecting projects to modernize and expand Mexico’s electricity infrastructure.

Impact of tariffs on the competitiveness of the Mexican electricity market

The development and modernization of Mexico’s electricity infrastructure depend heavily on imports of turbines, generators, transformers, control systems, components for solar panels or backup batteries, and specialized software equipment. If these products are subject to tariffs, the impact is a direct increase in costs for renewable energy or energy efficiency projects.

This directly affects both the Federal Electricity Commission (CFE) and private investors, as they would be forced to increase electricity rates, passing on part of their costs (from electricity infrastructure projects) to end consumers.

How to manage the cost of tariffs on electrical equipment and technology?

Some strategies that companies in the electricity sector in Mexico can adopt to mitigate the impact of the tariffs imposed by the United States should focus on:

• Seeking new suppliers of equipment and technology in countries with which Mexico has favorable trade agreements or with less exposure to volatile tariff policies.
• Investing in energy efficiency, even if the initial investment may seem high. Optimizing energy consumption with technologies that also optimize operational processes can generate significant long-term savings, offsetting increased import costs.
• Promoting local production and procurement of equipment and components for the electricity sector and strengthening the domestic value chain.

How does Industronic contribute to solving this problem?

Aware of the pressure that tariffs can exert on operating costs and competitiveness, Industronic offers comprehensive solutions designed to optimize energy use, reduce consumption, and ultimately mitigate the economic impact of these tariff measures:

• Energy optimization systems with advanced technologies to identify and correct inefficiencies in your electrical systems.
• High-quality technology and state-of-the-art equipment that, despite fluctuations in import costs, offer a solid return on investment by ensuring superior performance and a longer service life.
• Smart energy management with solutions such as BESS systems that enable real-time monitoring, control, and management of energy consumption.
• Specialized energy efficiency consulting thanks to a team of experts who know customized strategies to maximize energy performance and minimize losses, in compliance with local regulations and international standards.