{"id":84923,"date":"2025-07-30T11:35:42","date_gmt":"2025-07-30T16:35:42","guid":{"rendered":"https:\/\/imco.org.mx\/en\/?p=84923"},"modified":"2025-07-30T11:50:49","modified_gmt":"2025-07-30T16:50:49","slug":"the-effect-of-trumps-tariffs-on-the-border-states","status":"publish","type":"post","link":"https:\/\/imco.org.mx\/en\/the-effect-of-trumps-tariffs-on-the-border-states\/","title":{"rendered":"The Effect of Trump\u2019s Tariffs on the Border States"},"content":{"rendered":"
\"\"
OMAR MART\u00cdNEZ \/ CUARTOSCURO.COM<\/figcaption><\/figure>\n

By Annya Baz\u00faa and Rosie Alchalel*<\/b><\/p>\n

Mexico and the United States share a roughly 1,959 mile border which has prompted decades of deep interaction and profound mutual influence for each countries\u2019 economic and social development. This is especially true for states with close proximity to the border, including Baja California, Chihuahua, Coahuila, Nuevo Le\u00f3n, Sonora and Tamaulipas.\u00a0<\/span><\/p>\n

The current political and economic context imposes a significant challenge for these states. On the one hand, they have emerged as some of the main beneficiaries of nearshoring due to their geographic location and industrial development. Nonetheless, they show a clear susceptibility to the United States\u2019 current administration\u2019s volatile tariff policies.\u00a0<\/span><\/p>\n

The State Competitiveness Index (<\/span>Indice de Competitividad Estatal (ICE<\/a>))<\/span><\/i>, produced annually by the IMCO, categorizes states according to their capacity to attract and retain talent and investment. This year, the ICE emphasized the level of competitiveness of the distinct \u201ccorridors\u201d or \u201cwellbeing hubs\u201d included in the current administration\u2019s <\/span>Plan M\u00e9xico<\/span><\/i>.\u00a0<\/span><\/p>\n

What does this data tell us about the competitiveness of the border states? In the subindex of innovation and economy, the states that make up this region tend to rank highly. For example, Nuevo Le\u00f3n is in fourth place, Chihuahua in sixth, and Baja California in ninth. As a group, they occupy third place in economic diversity and second place in both economic complexity in the innovation sector and merchandise exports.<\/span><\/p>\n

Despite these strengths, the tariffs implemented by the Trump administration pose a significant challenge for the group\u2019s competitiveness. For the northern border states, the exports represent an averaged 71% of their GDP, a percentage significantly higher than other regions using the same ICE. This makes them particularly vulnerable to any modification in bilateral trade, given that any adjustment can impact their local economies and value chains.\u00a0<\/span><\/p>\n

Considering this context, it is vital to propose economic resilience strategies that might complement the commercial integration with North America and leverage <\/span>Plan M\u00e9xico<\/span><\/i> as a means to strengthen the competitiveness of the border region. This strategy aims to boost national production and generate employment without conflicting with trade liberalization.\u00a0<\/span><\/p>\n

Plan M\u00e9xico <\/span><\/i>also proposes increasing the national added value in strategic sectors, such as the automotive and electronic sectors, which represent around 40% of the country\u2019s exports to the United States. In this context, Mexico must seek strategies that leverage its trade networks with the rest of the world.<\/span><\/p>\n

The border state\u2019s competitiveness, particularly in the context of imposed tariffs, requires rethinking strategies that promote economic diversification and leverage <\/span>Plan M\u00e9xico<\/span><\/i> from a regional perspective. Additionally, it is important not to forget that, with its advantages and disadvantages, the region\u2019s proximity to the United States imposes inevitable conditions that are and will always be part of the region\u2019s DNA.<\/span><\/p>\n

Published in Animal Pol\u00edtico<\/a><\/p>\n

24-07-2025<\/p>\n

*Interns in the Society Program at IMCO. Annya studies political science and economics at New York University and Rosie studies political science at Barnard College.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Annya Baz\u00faa and Rosie Alchalel* Mexico and the United States share a roughly 1,959 mile border which has prompted decades of deep interaction and profound mutual influence for each countries\u2019 economic and social development. This is especially true for states with close proximity to the border, including Baja California, Chihuahua, Coahuila, Nuevo Le\u00f3n, Sonora … Continue reading The Effect of Trump\u2019s Tariffs on the Border States<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":84924,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1],"tags":[],"aioseo_notices":[],"yoast_head":"\nThe Effect of Trump\u2019s Tariffs on the Border States - IMCO_en<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/imco.org.mx\/en\/the-effect-of-trumps-tariffs-on-the-border-states\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Effect of Trump\u2019s Tariffs on the Border States - IMCO_en\" \/>\n<meta property=\"og:description\" content=\"By Annya Baz\u00faa and Rosie Alchalel* Mexico and the United States share a roughly 1,959 mile border which has prompted decades of deep interaction and profound mutual influence for each countries\u2019 economic and social development. 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