Mexico City rejoiced on Thursday after avoiding the latest batch of tariffs imposed by the White House on numerous U.S. trading partners globally. However, the incident served as a reminder that uncertainties in the global economy are unavoidable.

President Claudia Sheinbaum credited the free-trade agreement between Mexico, Canada, and the U.S. as instrumental in shielding Mexico from these recent tariffs. She highlighted the importance of addressing the existing 25% U.S. tariffs on imported automobiles, steel, and aluminum. She emphasized the need to boost domestic production to protect jobs and decrease reliance on imports.

Sheinbaum mentioned her conversation with President Trump, wherein she clarified that Mexico did not impose tariffs on the U.S., expecting reciprocal treatment. Economy Secretary Marcelo Ebrard observed that although Mexico had free-trade agreements with the U.S., various countries faced the tariffs announced by President Trump on "Liberation Day" to bolster U.S. manufacturing jobs.

Despite Mexico escaping the latest tariff round, Ebrard pointed out that Mexican exports such as avocados, clothing, and electronics would continue entering the U.S. duty-free. Sheinbaum encouraged companies manufacturing in Mexico but not utilizing the free-trade agreement to take steps to qualify, using major German auto producers as an example.

Although Mexico avoided the tariffs this time, the interconnectedness of the North American auto supply chains caused repercussions. Stellantis announced a temporary production halt at its Toluca plant in Mexico and similar measures in a Canadian facility and U.S. plants. This situation underscores the necessity of Sheinbaum's efforts to promote domestic production through initiatives like Plan Mexico, which supports collaborations to produce electric buses for public transportation.