In an exclusive interview, Juan Gonzalez, senior research fellow at UIC’s Great Cities Institute, and Reyna Torres Mendivil, Consul General of Mexico in Chicago, weighed in on the potential consequences of the U.S.’s proposed 25% tariffs on Mexican and Canadian imports, which are currently on a 30-day negotiation pause.
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- Economic Impact on Jobs and Manufacturing
Gonzalez highlighted the deep economic ties between the U.S. and Mexico, particularly in auto manufacturing, where Mexico produced 4 million vehicles in 2024, with half made by U.S. companies like GM and Ford. He warned that tariffs could hit the working class the hardest, raising vehicle costs and putting hundreds of thousands of jobs at risk.
- Economic Impact on Jobs and Manufacturing
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- Supply Chain Disruptions and Consumer Prices
Torres Mendivil stressed that trade between Mexico and the U.S. exceeds $8 billion annually, making any disruption a major economic threat. She warned that if the tariffs proceed, they will impact supply chains and raise prices for millions of consumers in both countries. A Brookings Institution report estimates potential job losses of up to 400,000 if Mexico and Canada retaliate.
- Supply Chain Disruptions and Consumer Prices
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- Trade, Border Security, and Drug Trafficking
Trump has positioned the tariffs as a border security measure, pressuring Mexico to curb drug trafficking. However, Gonzalez pushed back on this framing, stating: “Illicit drugs continue to flow because there’s money to be made. A real solution must address both supply and demand.” Torres Mendivil also pointed out that illegal firearm trafficking into Mexico needs to be part of the discussion.
- Trade, Border Security, and Drug Trafficking
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- What’s Next?
With 30 days to negotiate, the future of North American trade hangs in the balance. Whether the pause leads to a resolution or escalates into a full-blown trade war remains to be seen.
- What’s Next?
From WTTW (To go to the actual article, please click on this link.)
