Trump Declares Tariff Emergency on "Liberation Day" - What It Means for Mexico

On April 2, President Donald Trump declared a national emergency under the International Emergency Economic Powers Act (IEEPA) to confront what he described as an urgent threat to America鈥檚 economic sovereignty and trade balance.

• Reciprocal Tariffs Snapshot
• Why Mexico Is a Standout Winner in This Tariff Landscape
• Key Industries Poised to Grow
• Challenges Still Remain in Certain Sectors
• Government Response: 鈥淧lan Mexico鈥�
• Nearshoring Momentum: Why Mexico Is More Attractive Than Ever
• Conclusion: Mexico鈥檚 Competitive Moment Is Now

The move, unveiled during a press conference in the White House Rose Garden, introduced sweeping new tariffs that could reshape global manufacturing and supply chain strategies.

Effective Dates:

April 5, 2025: A 10% baseline tariff applies to all imports.
April 9, 2025: Elevated tariffs imposed on countries with large trade deficits with the U.S.

Key Tariff Increases:

• 25% tariff on foreign autos
• 34% tariff on China
• 20% tariff on the European Union
• 26% tariff on Japan
• 32% tariff on Taiwan

Exemptions include steel, aluminum, semiconductors, auto parts, pharmaceuticals, and critical minerals.

Mexico & Canada:

• USMCA-compliant goods: 0% additional tariff
• Non-USMCA goods: Remain subject to a 25% IEEPA tariff, with no additional penalty
• If IEEPA orders tied to fentanyl/migration are lifted, non-USMCA goods could face a 12% reciprocal tariff

Reciprocal Tariffs Snapshot

A full breakdown of tariffs charged to the U.S. by other nations vs. U.S. reciprocal tariffs (April 2025).

Official White House Fact Sheet PDF available here.

Why Mexico Is a Standout Winner in This Tariff Landscape

• Mexico remains strategically positioned and largely exempt from the new tariffs, thanks to its role in the United States-Mexico-Canada Agreement (USMCA).
• Mexican exports of electronics, textiles, pharmaceuticals, and automotive components can continue entering the U.S. without additional duties.

Key Industries Poised to Grow

• Medical Device Manufacturing (Baja California)
• Consumer Electronics & EMS (Tijuana, Monterrey)
• Automotive Parts (Saltillo, Quer茅taro)
• Textiles & Apparel
• 3PL & Order Fulfillment Operations

Challenges Still Remain in Certain Sectors

• Vehicles and auto parts
• Steel and aluminum
• Electrical components and batteries

Government Response: 鈥淧lan Mexico鈥�

• To amplify its industrial resilience, the Mexican government launched Plan Mexico, a national strategy to boost local manufacturing capacity.
• One flagship project is the Taruk electric bus, with 70% Mexican-made parts.

Nearshoring Momentum: Why Mexico Is More Attractive Than Ever

• Mexico鈥檚 proximity, cost structure, and trade benefits are hard to ignore.
• Key advantages include shared time zones with the U.S., fast cross-border logistics, skilled labor, and CPI鈥檚 shelter program.

Conclusion: Mexico鈥檚 Competitive Moment Is Now

• With tariff exemptions and strong policy support, Mexico is North America鈥檚 premier manufacturing destination.
• Now is the time to act before global competition increases.