How tariffs could impact the Borderland
JUÁREZ, Chihuahua (KVIA) -- Mexico's President Claudia Sheinbaum and Economy Secretary Marcelo Ebrard praised the treatment received by Mexico after President Trump unveiled a new global tariff plan on Wednesday.
President Trump announced new worldwide countries on all good imported into the U.S., excluding Mexico and Canada due to USMCA. But both neighboring countries could still be subjected to other tariffs on vehicles, steel, and aluminum.
“President Sheinbaum’s strategy has worked. We (Mexico) have a preferential treatment,” Secretary Ebrard said during a morning news conference.
"There are no additional tariffs to Mexico and that is good for the country,” President Sheinbaum said as well.
ABC-7 reached out to local business, trade and commercial leaders to learn what impacts the border could still see with this new round of sweeping tariffs.
People in the Borderland
According to Tom Fullerton, professor of economics at UTEP, tariffs tend to have a bigger impact on low income families. The household median income in El Paso and Las Cruces is substantially below the national average, so they're going to feel the fiscal weight of this latest tariff proposal the most.
He says appeal and shoes will see the highest price hike but it's not limited to those items. Consumer electronics, automobiles, computers, televisions are just a few other items that will be impacted.
Fullerton says we haven't observed tariff rates this high since 1910. During these time families may be temped to use their credit cards to purchase every day household items but Fullerton says he would not suggest that.
"People definitely need to try to limit their credit card purchases. Because credit card interest rates are so high and they shouldn't carry balances on their credit cards. And a lot of households are going to be tempted to do this because the annual impact of these new tariffs is estimated at $3,800 per household."
This time last year, the average tariffs in the United States total was about 2.5% The 2025 tariffs averaged about 22% of the value of all imports coming into the country.
Companies in the Borderland
Companies in the El Paso area will feel the new tariffs once they come into place, but some aren't overly concerned about them.
"We here in the Borderplex are very fortunate, in that we were exempt from the 10% baseline tariff that was proposed by President Trump yesterday. So it's a reflection of the strength of the USMCA here."
Jon Barela, CEO of the Borderplex Alliance said that the current trade agreements between the U.S, Mexico, and Canada can show how many jobs and how much wealth can be created by free trade across the border.
"We believe in free and fair trade. We believe in open markets. But the open markets have to be fair as well. That's why the USMCA is the best document in which to use."
Jerry Pacheco, the CEO of the Border Industrial Association says it could take some time before it becomes clear how the tariffs will impact the Borderland. He said that the region is the 5th largest manufacturing hub in North America, and the uncertainty of the tariffs could cause some issues.
"There's going to be products, that inadvertently, are so critical to the US economy, that all of a sudden they have a tariff imposed on them. And it disrupts the supply chain."
He said it could be similar to when the shelves were empty during the COVID-19 pandemic.
Barela said that the USMCA is going into its 6 year review process. According to Barela, the agreement is a template for how free trade should be conducted across the world, and the Borderland is at the center of it all.
"I am hopeful that we will enter into it with good faith, and that all three countries will continue to establish North America as the predominant place for re-shoring and near-shoring opportunities, especially in manufacturing."
