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July 27, 2025 3 mins
Welcome back to Mexico Tariff News and Tracker. Today, July 27th, 2025, we have critical developments on US–Mexico trade and tariffs that all our listeners need to know.

As we approach the August 1st deadline set by President Trump for renegotiated trade deals, tensions and uncertainty define the economic landscape between the United States and Mexico. Just a week from today, new US tariff policies are scheduled to take effect, and President Trump has made it clear in public remarks that his administration is prepared to raise tariffs substantially if countries do not make new trade deals with the United States. While much attention is focused on Canada and China, the US-Mexico trading relationship is under renewed strain, with some sectors facing immediate impacts.

Earlier this year, President Trump imposed a 25% tariff on Mexican and Canadian imports, initiating a new cycle of disputes with America's largest trading partners. However, according to the News-Journal, a March agreement allowed about 85% to 90% of Mexican goods to remain exempt from these new tariffs, at least temporarily. This reprieve is subject to ongoing reviews, and a fresh round of tariffs could begin in August, especially if Washington and Mexico City fail to reach a longer-term understanding.

The agriculture sector is one of the most affected. The US Commerce Department recently enacted a 17% tariff on fresh Mexican tomato imports—a move justified as necessary to protect American farmers from Mexican producers accused of flooding the market with artificially cheap produce. ABC News reports experts expect this will cause a five to ten percent drop in Mexico's tomato exports, which previously totaled more than $3 billion annually and supported roughly 500,000 jobs in Mexico. Major Mexican exporters, such as Veggie Prime, are already feeling the squeeze. According to Moisés Atri, Veggie Prime’s export director, the new tariffs have forced his company to renegotiate prices and absorb costs that threaten profitability. Many Mexican growers are now looking for alternative markets, with limited success, as sending fresh produce long distances, such as to Japan, drives prices even higher.

Meanwhile, the border economy is bracing for greater strain. In Texas, Mexico's largest US trading partner, local businesses and officials worry about the consequences of any broad tariff increases in August. Both Mexican and US officials are closely tracking court challenges to President Trump’s tariff powers. The US Court of Appeals is hearing cases this week that will determine whether Trump’s use of the International Economic Emergency Powers Act to unilaterally impose tariffs can stand.

The broader effect on listeners? An increase in tariffs could lead to higher prices for imported goods from Mexico, potential shortages in fresh produce, and job losses on both sides of the border. Both countries are facing difficult choices, especially as the US administration threatens to escalate with even higher tariffs if agreements are not reached swiftly.

Be sure to subscribe for ongoing updates as these historic events unfold and impact your business, investments, and daily life. Thank you for tuning in to Mexico Tariff News and Tracker.

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back to Mexico Tariff News and Tracker today July
twenty seven, twenty twenty five. We have critical developments on
US Mexico trade and tariffs that all our listeners need
to know. As we approach the August first deadline set
by President Trump for renegotiated trade deals, Tensions and uncertainty
define the economic landscape between the United States and Mexico.

(00:22):
Just a week from today, new US tariff policies are
scheduled to take effect, and President Trump has made it
clear in public remarks that his administration is prepared to
raise tariff substantially if countries do not make new trade
deals with the United States. While much attention is focused
on Canada and China, the US Mexico trading relationship is

(00:44):
under renewed strain, with some sectors facing immediate impacts. Earlier
this year, President Trump imposed a twenty five percent tariff
on Mexican and Canadian imports, initiating a new cycle of
disputes with America's largest trading partners. How Tanever, according to
the News Jiral, a March agreement allowed about eighty five

(01:04):
percent to ninety percent of Mexican goods to remain exempt
from these new tariffs, at least temporarily. This reprieve is
subject to ongoing reviews, and a fresh round of tariffs
could begin in August, especially if Washington and Mexico City
failed to reach a longer term understanding. The agriculture sector
is one of the most affected. The US Commerce Department

(01:26):
recently enacted a seventeen percent tariff on fresh Mexican tomato imports,
a move justified as necessary to protect American farmers from
Mexican producers accused of flooding the market with artificially cheap produce.
ABC News reports. Experts expect this will cause a five
to ten percent drop in Mexico's tomato exports, which previously

(01:47):
totaled more than three billion dollars annually and supported roughly
five hundred thousand jobs in Mexico. Major Mexican exporters such
as Veggie Prime are already feeling the squeeze. According to
mois Atri, Veggie Prime's export director, the new teriffs have
forced his company to renegotiate prices and absorb costs that

(02:07):
threaten profitability. Many Mexican growers are now looking for alternative markets,
with limited success as Sending fresh produce long distances, such
as to Japan, drives prices even higher. Meanwhile, the border
economy is bracing for greater strain in Texas, Mexico's largest
US trading partner. Local businesses and officials worry about the

(02:30):
consequences of any broad tariff increases in August. Both Mexican
and US officials are closely tracking court challenges to President
Trump's tariff powers. The US Court of Appeals is hearing
cases this week that will determine whether Trump's use of
the International Economic Emergency Powers Act to unilaterally imposed tariffs
can stand. The broader effect on listeners, An increase in

(02:52):
tariffs could lead to higher prices for imported goods from Mexico,
potential shortages and fresh produce, and job losses on both
sides of the border. Both countries are facing difficult choices,
especially as the US administration threatens to escalate with even
higher tariffs if agreements are not reached swiftly. Be sure
to subscribe for ongoing updates as these historic events unfold

(03:15):
and impact your business, investments, and daily life. Thank you
for tuning in to Mexico Tariff News and Tracker. This
has been a Quiet please production. For more check out
Quiet please dot a I
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