President Claudia Shinbam’s Thursday morning came to the press conference for us 16 hours after us President Donald Trump has announced that he will impose a 25% fee for “all cars that are not done in the United States”. Starting next week.
However, the US content is exempted from duty on vehicles assembled in Mexico, which will reduce the useful fee on Mexican -manufactured vehicles (see the Mexico News Daily Report here).
Economic Minister Marcello Ebert joined Shinbam Mainnera Washington, via DC’s video link, is discussing trading issues with US officials, including fees.
Here is a review of his views on the new vehicle fee announced by Trump on Wednesday.
‘It’s a big change for the trading system’
“Yesterday, as As chairman Already mentioned, President Trump has announced… 25% of the charges on imported vehicles in the United States, ”Ebert said.
“This is a big change for the trading system,” he said.
Ebraht noted that Mexico’s automotive and automobile parts are “very significant”.
“… we export nearly 3 million vehicles to the United States (annually), we offer 40% of all vehicle parts used in the United States,” he said.
‘All we have to do is seek preference for Mexico’
After mentioning that he and other Mexican officials had met six times with US trade secretary Howard Ludnik and US trade representative Jameson Greere, Ebraht made it clear what Mexico wanted from its northern neighbors.
“If they are going to change the system and we are going to go to the system of high fees, what we have to do is seek priority for Mexico, so that we have the conditions to protect the economic activity of Mexico,” he said.
“This is, of course, it was a little hard as you think, but thank you President Shinebam was with President TrumpThe door was opened for the meetings I had to do, ”said Ebert.
Asked by reporters on Wednesday, President Trump said that this was “permanent”.
Get ‘discount’ for vehicles made in Mexico
Ebraht noted that the US content in vehicles made in Mexico has increased in recent years.
“Of the brands in Mexico, the (US) component is now more or less significant percentage,” he said.
Ebert explained that the vehicles manufactured in Mexico would get a “discount” at a 25% fee announced by Trump.
According to Killermo Rosals, president of Mexican automobile distributors, a vehicle manufactured to the United States in Mexico has an average of 40% of the US content. The useful fee of a vehicle with a US content of 40% in Mexico will be 15%. Of course, depending on the percentage of the US content of a particular vehicle, the fee may be higher or less than that amount.
Ebert said the low cost rate applies to vehicles manufactured in Mexico, “the most important thing.”
Mexican Auto Parts Fees will not take effect from April 2
As a result, Ebert said that Mexican Auto Parts under the North American Free Trade Agreement will not face fees on April 2.
It is not clear that the process of using the non -US content for non -US content in the auto areas will be installed as soon as possible.
Ebraht said he was in talks with the US Trade Secretary, aimed at protecting Mexican vehicle parts from fees.
He reiterated that Mexico offers 40% of all vehicle parts used in the United States.
“To make this more clear, you can buy a vehicle made in the United States, but it contains 40% of Mexican components,” said Ebert. “So we (US officials) said: ‘How are you going to charge 25% of the Mexican vehicle parts?”
Auto payment cannot be charged more than one time
Ebraht said that during the vehicle manufacturing process, areas that cross the borders into North America would not be taxed every time the US enters the United States.
“I once explained (the president) Mainnera,… Cross the border of a piston (can). Imagine (cost) seven times, no matter what percentage of 25% (payment), or any percentage, ”he said.
“It has already been clearly established that this will not happen,” said Ebert.
The Economic Minister said that Mexico’s desire to avoid fees on Mexican vehicle parts and the establishment of a rule that prevents vehicle parts in many cases was the focus of the most recent discussions with US officials.
“In a nutshell, what we are in the end is that the products made in Mexico are better than any other country exporting to Germany, Japan, South Korea or the United States,” said Ebert.
“This is the priority organization that the president has asked us to organize us,” he said.
A ‘best world’, no charges
Ebrard said there would be no “best in the best world” trading, but he acknowledged that it was to accept a secure -free posture or “an end to all the countries of the world.”
US Trade Secretary Hoved Lutnik said that he was personally “better”.
“Every week, he welcomed me with joy. He understood many arguments we gave him,” said Ebert.
‘Detailed Answer’ for US charges on April 3
On April 3, Sheinbam said the government would “give a comprehensive response” to US fees.
The US has already imposed 25% of fees on Mexican steel and aluminum, And USMCA is not closed on items coming from Mexico. The Trump administration wants to impose mutual fees for goods from all its business partners on April 2.
“We don’t want to give an answer to every issue, but rather a detailed answer,” said Sheinbam.
“The first thing that people need to know is that we will always protect Mexico – that is our responsibility,” he said.
“We also need to protect the work, existing jobs and Mexican companies created in Mexico,” said Shinbam.
“Of course, there should be no fees within the United States-Mxico-Canada Agreement,” he added. “That is the essence of the trade agreement.”
Mexico News Daily Chief Employee Writer Peter Davis ((Email protected))
