Tariffs Are Back, but North America’s Economic Strength Depends on Cooperation

The global trade landscape is shifting once again, and tariffs have returned to center stage.

Since assuming office in January 2025, President Donald Trump has reintroduced a more assertive trade agenda. One of his first actions was an executive order that set a series of trade investigations and policy recommendations in motion. By early April, a new wave of tariffs had been announced, affecting more than 60 trading partners and reshaping the conversation around global commerce.

The latest tariff measures follow a familiar trajectory. From February through April, the administration introduced or expanded tariffs on a broad range of goods, including steel, automobiles, Canadian energy, and Chinese imports. Section 232 tariffs on steel and aluminum—already a source of longstanding tension—have been expanded. New duties on fully assembled vehicles are also being implemented, citing the need to rebuild U.S. industrial strength and secure national economic interests.

While Mexico and Canada were largely exempt from the “Liberation Day” tariffs announced in early April, longstanding tariffs remain in place for specific products. Steel, aluminum, and automobiles from both countries continue to face a 25% tariff unless they meet the United States-Mexico-Canada Agreement (USMCA) rules of origin requirements. For goods that do not meet these standards, particularly those incorporating substantial inputs from non-USMCA countries, the full 25% tariff now applies.

This creates a more complex environment for industries with cross-border supply chains. Steel and aluminum imports from Mexico also face the same 25% duty if they fail to qualify under USMCA rules. These changes introduce new challenges, particularly for manufacturers operating along the U.S.-Mexico border.

Despite these obstacles, the deep economic integration between the United States and Mexico remains a critical strength. Mexico is not only a trading partner but also a key supplier to U.S. industries. The supply chains developed across the border over decades are deeply embedded and difficult to replicate without significant economic disruption.

As the United States works to expand domestic production, it faces another reality: labor shortages, declining interest in manufacturing jobs, and growing demand for skilled trades make it increasingly clear that reshoring alone cannot meet industry needs. North American manufacturing success depends on collaboration, not isolation.

Mexico’s skilled workforce and proximity are essential to U.S. manufacturing success.

Mexico brings essential advantages to this shared effort. It offers proximity, a highly skilled industrial workforce, and established capabilities in automotive, aerospace, electronics, and medical manufacturing. Rather than a competitor, Mexico is a strategic partner in strengthening regional supply chains.

At the same time, Mexico’s willingness to cooperate on broader issues such as migration has helped create space for renewed economic dialogue. This spirit of collaboration should be recognized and leveraged in trade discussions moving forward.

As new tariffs are implemented, it is important to recognize that no political or policy shift can easily undo the interdependence that defines the U.S.-Mexico economic relationship. This partnership is built on decades of shared production, mutual investment, and regional growth.

The question is not whether North America should separate its economies, but how it can strengthen its position as the most competitive manufacturing region in the world. That effort begins with acknowledging that collaboration is not a weakness but an enduring strategic advantage.