LatinNews Daily - 04 August 2025

Mexico: On 31 July Mexico’s leading business association, Confederación Patronal de la República Mexicana (Coparmex), warned that uncertainty around Mexico’s commercial relationship with the US was harming investment. Coparmex released the statement after Mexico’s President Claudia Sheinbaum confirmed that US President Donald Trump had agreed to pause plans to increase tariffs on Mexican imports to 30%, which were originally due to come into force on 1 August, for 90 days. While Coparmex noted this extension “avoids an immediate crisis”, it stated it did not resolve the underlying problem and that Mexican imports to the US not covered by the US-Mexico-Canada Agreement (USMCA) continued to face 25% tariffs while sectoral tariffs of 25% on automotive exports and 50% on steel, aluminium, and copper remained in force. Coparmex said the tariff postponement fuelled further uncertainty, which “slows investments and weakens confidence in Mexico as a trading partner”. The group added that “without legal certainty, trade stability and reliable energy, it is impossible to attract investment and strengthen value chains”. Coparmex called on the government to “maintain a strategic and permanent dialogue with the US authorities, aimed at guaranteeing trade stability and conditions of certainty for companies”. Another leading business lobby, the Consejo Coordinador Empresarial (CCE), was more complimentary of the agreement, saying it “represents an important step to protect bilateral trade, integrated value chains and millions of jobs in both countries”. The government has positioned the agreement as a major victory, with both Sheinbaum and Mexico’s Economy Minister Marcelo Ebrard saying it ensured Mexico was in a much better position than any other country in relation to US trade policies. Indeed, the postponement took place as Trump raised tariffs on fellow North American trading partner Canada to 35% and implemented 50% tariffs on Brazilian imports.

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