Summary
The Mexican footwear industry faces challenges and opportunities due to trade tensions and tariffs involving the U.S. President Trump and Mexican President Sheinbaum have extended tariff negotiations until October 31. While some Mexican shoe manufacturers see potential benefits from tariffs on other countries, small businesses struggle with production drops and competition from imports.
Key Facts
- Juan Alvarado owns a shoe manufacturing business in Leon, but current U.S.-Mexico trade tensions have forced him to reduce his workforce from 25 to 15 people.
- Mexico faces a 25% tariff on cars and a 50% tariff on steel, aluminum, and copper. There is a 25% tariff on goods not covered by the USMCA.
- Despite tariffs, some Mexican footwear exports to the U.S. are tariff-free if they comply with USMCA rules.
- Juan Carlos Cashat Usabiaga, head of CICEG, sees these circumstances as advantageous compared to tariffs faced by other nations.
- Alvarado's production dropped as his U.S. client cut shoe orders due to tariff uncertainties.
- Mexico stopped package shipments to the U.S. after an end to a tax exemption for packages under $800.
- Mexico is the ninth-largest footwear producer globally, concentrating over 75% of production in Guanajuato.
- Chinese imports and price undercutting practices impact Mexico's footwear production, affecting jobs and industry growth.
