Mexico's Sheinbaum demonstrates expertise in handling Trump: Insights from our CEO's point of view
Mexico's President Claudia Sheinbaum, the first female and Jewish president of the country, has been managing a delicate balance in her relations with the United States, particularly under the Trump administration.
Despite the U.S. government imposing tariffs on top trade partners, President Trump does not seem overly concerned about inflation as a result of these tariffs on Mexico. This is largely due to the United States-Mexico-Canada Agreement (USMCA), a trade pact negotiated under the Trump administration, which has shielded the majority of Mexican exports from the punitive duties.
President Sheinbaum acknowledged that Mexico received "preferential treatment" because of USMCA, highlighting the "mutual respect" between U.S. and Mexican officials that facilitated this status. The Trump administration announced 25% tariffs on automobiles and parts starting in early 2025, but these tariffs also included exemptions for USMCA-compliant products.
To further mitigate the impact of U.S. tariffs, Sheinbaum pursued policies to reduce Mexico's dependence on U.S. inputs vulnerable to tariffs by increasing domestic production of key goods like corn, beans, rice, fuel, and refined oil products. She also demonstrated cooperation with U.S. priorities by aligning on issues such as drug cartels and tariffs on Chinese goods.
While Sheinbaum's administration has been successful in avoiding heavy tariffs, Canada took a more confrontational stance and has not fared as well in avoiding tariffs despite also benefiting from USMCA provisions. Mexico's diplomatic approach combined with trade compliance and strategic domestic policy have been crucial to mitigating the impact of U.S. tariffs under Trump’s broader protectionist trade agenda.
President Sheinbaum has also made significant strides in addressing cartel violence and drug trafficking, deploying 10,000 troops to the border, sending 29 cartel leaders to the U.S. for trial, and dismantling or destroying more than 1,000 drug labs. She has repeatedly emphasized the U.S.'s important shared role in solving problems such as fentanyl trafficking, stemming the flow of immigrants at the border, and cartel activity.
However, the U.S. has accused her administration of having an intolerable alliance with cartels, being afraid of the cartels, and being unwilling to do anything significant against them. Sheinbaum's administration has had to make important funding decisions on her predecessors' expensive pet projects such as the Maya Train, the Dos Bocas oil refinery, and the rapidly growing federal Bienestar welfare program.
Sheinbaum's most recent approval rating is 80%, reflecting the trust the Mexican people have placed in her leadership. Her team has taken steps to curb the flow of Chinese investments and goods into the country, demonstrating a commitment to national sovereignty.
Travis Bembenek, the CEO of Mexico News Daily, who has been living, working, or playing in Mexico for nearly 30 years, commends Sheinbaum for her efforts. "I don't agree with every domestic policy decision Sheinbaum has made," he says, "but I think she deserves credit and respect as Mexico's leader."
As Sheinbaum continues her tenure, she will have to continue demonstrating her administration's commitment and progress on stopping the flow of drugs to avoid future tariffs and maintain the trust of both the U.S. and the Mexican people. She has shown a willingness to strengthen direct ties with other countries like Canada and Brazil, which could further diversify Mexico's trade relations and reduce its dependence on the U.S. market.
References:
- USMCA shields Mexico from punitive tariffs
- Mexico avoids heavy tariffs under Trump's protectionist trade agenda
- USMCA exemptions for automobile tariffs
- Mexico's diplomatic approach to U.S. tariffs
- Mexico largely avoids heavy tariffs due to USMCA
- Though President Trump imposed tariffs on top trade partners, the United States-Mexico-Canada Agreement (USMCA) has shielded Mexico from many of these punitive duties.
- Mexico's President Claudia Sheinbaum has managed to avoid heavy tariffs under Trump's protectionist trade agenda, largely due to the compliance with USMCA and a diplomatic approach towards the U.S.
- The Trump administration announced 25% tariffs on automobiles and parts, but USMCA-compliant products received exemptions.
- President Sheinbaum pursued policies to reduce Mexico's dependence on U.S. inputs vulnerable to tariffs, by increasing domestic production of key goods like corn, beans, rice, fuel, and refined oil products.
- To maintain the trust of the U.S. and the Mexican people, Sheinbaum will have to continue demonstrating her administration's commitment and progress on stopping the flow of drugs and cartel activity.
- Sheinbaum's administration faces accusations of having an intolerable alliance with cartels, but has made significant strides in addressing cartel violence, including the deployment of 10,000 troops to the border and the dismantling of over 1,000 drug labs.
