By Lety Villarreal
Ciudad Juárez, Mexico, Feb 4 (EFE).- Despite a temporary pause on tariffs, uncertainty clouds the economy along Mexico’s northern border, where the region’s export-driven industries remain on edge amid ongoing concerns about US trade policies.
President Donald Trump’s announcement to pause the 25 percent tariff policy on Mexican products has done very little to remove the skepticism that has engulfed Mexico’s northern border, which is a key hub for the nation’s maquiladora industry, according to local business owners.
The maquiladora industry refers to a system of manufacturing operations, primarily located in Mexico, where factories import materials and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing. The finished products are then exported, often back to the country where the raw materials originated, such as the United States.
In Ciudad Juárez, where 60 percent of jobs are tied to the export sector and external sales reached $59 billion in 2023, apprehensions remain prevalent in the private sector.
“With Trump’s arrival, this trade war and economic exchange become complicated. He has repeatedly signaled his intent to impose tariffs on Mexican products,” Thor Salayandía, representative of the Border Business Block (BEF), told EFE.
Lingering Concerns
While Mexican President Claudia Sheinbaum secured a temporary pause on the tariffs in exchange for deploying 10,000 National Guard troopers to the border to combat fentanyl trafficking and irregular migration, business leaders remain uncertain.
Manuel Sotelo Suárez, president of the Transport Association of Ciudad Juárez and vice president of the National Chamber of Freight Transport’s Northern Zone (Canacar), expressed his concerns over Trump’s threats to impose tariffs.
“What is clear is that the situation is still uncertain, especially in Chihuahua state and Ciudad Juárez,” Sotelo Suárez said.
The region’s export economy heavily relies on the manufacturing industry, with 85 percent of exports and imports tied to this sector.
Sotelo Suárez said if tariffs impacted Mexican products specifically, it would affect 15 percent of the region’s imports and exports, which could be damaging.
Cross-Border Impact
The uncertainty extends to transport operators, like Juan Manuel Nevarez, a driver for Fletes Sotelo. “This would worsen the long lines and hurt the economy. We’re already facing heavy traffic at the border, and additional tariffs would make things much worse,” he said.
A Key Economic Relationship
The tariffs are especially worrying for Mexico, which is the United States’ largest trading partner.
In 2023, exports to the US were valued at $490.183 billion, representing nearly 30 percent of Mexico’s GDP, according to the Mexican Institute for Competitiveness (IMCO).
Jaime Ávila, president of the National Council of the Maquiladora and Export Manufacturing Industry (Index) in Ciudad Juárez, warned that a decline in sector employment would directly threaten social stability at the border.
However, Ávila noted that some companies are still expanding in the region, particularly within the Taiwanese community, which is investing in six new companies in the area.
“While some companies are expanding, the government must implement incentives to keep businesses in Mexico and prevent them from relocating to other markets,” he said.
In response to Trump’s ongoing tariff threats, Ávila urged the government to take “concrete measures” to protect jobs and maintain Mexico’s competitiveness as a destination for investment.
Without a clear strategy, he warned, “the future of the maquiladora industry and the economy at the border remains uncertain.” EFE
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