{"id":11934,"date":"2025-06-27T13:50:45","date_gmt":"2025-06-27T19:50:45","guid":{"rendered":"https:\/\/grupoindustronic.com\/?p=11934"},"modified":"2026-02-24T06:04:12","modified_gmt":"2026-02-24T12:04:12","slug":"u-s-tariffs-on-mexico","status":"publish","type":"post","link":"https:\/\/grupoindustronic.com\/en\/u-s-tariffs-on-mexico\/","title":{"rendered":"U.S. tariffs on Mexico: impact on the industrial and electrical sectors"},"content":{"rendered":"

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.<\/p>\n

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

What are tariffs and how do they affect imports between the United States and Mexico?<\/span><\/h2>\n

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%<\/b> of Mexican exports went to the United States.<\/p>\n

Since April 2025, tariffs of up to 25%<\/b> 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:<\/p>\n

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  1. Loss of competitiveness due to the increase in the final price of products<\/b>: 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.<\/li>\n
  2. Barriers to binational supply chains<\/b>: 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).<\/li>\n
  3. Delaying energy infrastructure projects<\/b>: 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.<\/li>\n<\/ol>\n

    U.S. tariffs on Mexico for the industrial sector<\/span><\/h2>\n

    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%<\/b> of Mexican steel exports\u2014valued at approximately $2.1 billion<\/b>\u2014are at risk due to these new tariffs.<\/p>\n

    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.<\/p>\n

    US tariffs on Mexico for the electricity sector<\/span><\/h2>\n

    Although the electricity sector is not directly mentioned in the tariff discussions, its dependence on imported equipment, technology, and components\u2014many of them from the United States\u2014makes it vulnerable, affecting projects to modernize and expand Mexico’s electricity infrastructure.<\/p>\n

    Impact of tariffs on the competitiveness of the Mexican electricity market<\/span><\/h3>\n

    The development and modernization of Mexico’s electricity infrastructure depend heavily on imports of turbines, generators, transformers, control systems, components for solar panels<\/b><\/a> or backup batteries<\/b><\/a>, 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.<\/p>\n

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

    How to manage the cost of tariffs on electrical equipment and technology?<\/span><\/h3>\n

    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:<\/p>\n