President Donald Trump’s tariffs lead to geopolitical relocation, said Marcelo Ebrard, Secretary of Economy.

What is geopolitical relocation? A process in which countries and companies reconfigure supply chains and investments to reduce strategic risks. It involves moving production or alliances to safer regions, seeking stability, competitiveness, and less dependence on conflict zones.

Geopolitical relocation

At the end of the Third Plenary Meeting of the Morena party in Mexico City, Ebrard commented on Saturday that this global reconfiguration carries more weight than the six-year review of the Treaty between Mexico, the United States, and Canada (USMCA), which is due to take place on July 1, 2026.

“What are we going to witness? What we call geopolitical relocation. In other words, before we talked about relocation, but now it is imperative. Why? Because you have a tariff system based on where you produce, not on the quality of your product, not on the relative price, not on technology, but on a political decision,” Ebrard said.

U.S. customs currently applies tariffs of 35% to Canada and 25% to Mexico on products that do not comply with the USMCA due to alleged non-cooperation on fentanyl and migration; 25% on light vehicles from both countries (excluding U.S. content) and 50% on steel, aluminum, and copper, also from both countries.

Tariffs

On Monday, in her first government report, President Claudia Sheinbaum highlighted that “Mexico is the country with the lowest average tariff rates in the world.”

Sheinbaum added that the Mexican government will continue to work with the various US State Departments. 

“We are convinced that within the framework of the Trade Agreement we can achieve even better conditions,” added the President. 

In two days, Mexico will welcome the U.S. Secretary of State to agree on a framework for cooperation on security matters. 

“We have made it clear that the basis of this understanding is shared responsibility, mutual trust, respect for sovereignty and territoriality, and cooperation without subordination,” she said.