What Impact will Trump's Announced Tariffs on Copper and Medicines Have in Mexico?

Adding to his tariff rhetoric, the president of United States, Donald Trump —in addition to the possibility of imposing tariffs of up to 40% on all merchandise from 14 countries— announced that he is going for a tariff for medicines and products derived from copper. In this sense, the US president announced that he will impose a tariff of 50% on copper imports and 200% on pharmaceuticals, according to statements made at a cabinet meeting at the White House. In addition, he confirmed that semiconductors will also be subject to taxes. For their part, with medicines, he offered a period of up to 18 months for companies to move their production to the United States before facing tariffs of 200%. In the case of copper, the entry into force would be at the end of July.

México En Jaque Por Aranceles Al Cobre y Medicinas1553

Now, the announcement surprised the Mexican government. The Secretary of Economy, Marcelo Ebrard, reported that he would hold a call with US authorities to learn the technical details of the tariffs on copper and medicines, to define Mexico’s official position.

“First we must know more about the information. I will have a call with officials from the United States and, from there, I will be able to offer a more precise position, because they themselves were not aware,” he declared. For her part, the president of Mexico, Claudia Sheinbaum, stated that there is a strategy, but that they are going to wait for the Mexican team led by Marcelo Ebrard, Secretary of Economy, to go to the neighboring country to see the global agreement. “We are always going to look for the best conditions for Mexico”, she stated.

What Impact will Tariffs on Medicines Have in Mexico and International Trade?2439

The initiative of former President Donald Trump to impose tariffs on medicines of up to 200% has set off alarms in the health, trade and international policy sectors. If materialized, this measure would function as a direct tax on imported medicines, increasing their price and affecting both US consumers and exporting countries, including Mexico.

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Tariffs on Medicines: Direct Impact on Prices and Shortages3206

Experts warn that tariffs on medicines could cause an increase of up to 13% in drug prices in the United States. In this context, companies such as Johnson & Johnson have indicated that these taxes would alter supply chains, generating shortages, especially of generic drugs. Such a measure would particularly affect older adults and vulnerable sectors, who depend on accessible and continuous treatments. In addition, the medicine production chain is highly internationalized. Tariffs could hinder the import of active ingredients of medicines and finished products, which would increase the risks of shortages if contingency mechanisms are not implemented. This disruption would have direct consequences on hospitals, pharmacies and insurers, raising the costs of the healthcare system and putting pressure on medical programs in that country.

Mexico Facing Tariffs on Medicines: Commercial Risk and Deficit4144

For its part, Mexico exports around 1,335 million dollars in pharmaceutical products to the United States, while it imports 1,559 million from that country, a deficit of 224 million dollars, according to Data Mexico, a platform of the Ministry of Economy. Consequently, the imposition of tariffs on medicines would directly affect the competitiveness of Mexican manufacturers, by increasing the price of their products and reducing demand in their most important market. This could deepen the trade deficit in the sector and weaken the country’s exporting companies. Although the proposal seeks to encourage the relocation of pharmaceutical manufacturing in the US, experts warn that installation, regulation and operation costs could slow down that process. The companies themselves have requested between 12 and 18 months as a grace period to assess their viability, while analysts predict an inflationary effect before a significant industrial recovery.

Impact Splashes Public Health and Household Economy5193

Additionally, as a whole, tariffs on medicines would represent additional pressure on US households, with an estimated impact of up to $3,800 annually per family on consumption and health. The environment becomes even more complex if the risks to public health and commercial stability with strategic partners such as Mexico are considered. The measure, far from being just a fiscal issue, threatens to trigger structural effects in the industry, commerce and universal access to medicines.

Arancel Del 50% Al Cobre También Trae Retos Para La Economía Internacional5752

Meanwhile, according to Data Mexico, during the last five years, Mexico has consolidated the United States as its main supplier of refined copper and copper minerals, in a context of growth in industrial sectors such as automotive, construction and electric power. In 2024 alone, Mexican imports from the United States were:

• 1,014 million USD in refined copper and alloys.
• 1,186 million USD in copper minerals and concentrates. In contrast, Mexican exports of copper to the United States are not among the main ones in the sector. Copper exports from Mexico to the United States in 2024 amounted to 1,077,324,419 dollars according to the Bank of Mexico. Under this scenario, the imposition of tariffs of 50% by the United States on copper imports would have a significant impact both in Mexico and internationally. For Mexico, the main importer of refined and concentrated copper from the United States, it would imply a considerable increase in production costs for key sectors such as the electrical, automotive and advanced manufacturing industries. Companies would face higher prices for essential inputs, which could reduce their competitiveness or pressure their profit margins. At the international level, the tariff increase would cause distortions in copper trade, redirecting flows to other markets such as China or the European Union, and generating volatility in global prices. In addition, exporting countries could see a decrease in their participation in the US market, while supply chains would be forced to adjust quickly.

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