By Jaqueline Quesada / Translated by Samai Páez

The recent trade policies announced by the president-elect of the United States, Donald Trump, could have significant effects on the fashion industry in Mexico and, to a lesser extent, in the rest of Latin America. Trump proposes a 25% tariff on imports from Mexico and Canada, as well as a 10% increase in products from China, measures that seek to address concerns about immigration and border security. In response, the Mexican government has indicated that it could adopt reciprocal measures.

Mexico, as one of the main trading partners of the United States, faces a complex scenario. According to data from Expansión, Mexican exports to the United States exceeded 406 billion dollars between January and September 2024, with a significant part corresponding to the textile and fashion sector.

The imposition of tariffs could make Mexican products more expensive, reducing their competitiveness in the US market. In addition, these changes could affect supply chains that depend on low-cost textile inputs, mainly from China. According to Statista, China exported textiles valued at approximately 150 billion dollars in 2022, and increasing tariffs on these inputs would further increase production costs.

Implications and adaptations in Latin America

Although the tariffs are specifically aimed at Mexico, trade tensions can ndirectly effect other countries in Latin America. The region, which depends less on direct exports to the United States, could face difficulties due to expensive inputs and the possible redistribution of global supply chains.

One of the main strategies to mitigate these impacts would be to strengthen local production capacities and reduce dependence on international suppliers. However, the limited infrastructure in several Latin American countries hinders a rapid transition. As the State of Fashion 2025 of Business of Fashion, this lack represents a significant challenge to move towards more sustainable production models.

In this context, sustainability could become the opportunity for Latin American brands, especially those that seek to differentiate themselves in local and global markets. Despite the challenges, current trade policies underline the importance of diversifying markets, investing in local infrastructure and strengthening regional resilience to ensure the competitiveness of Latin American fashion in a changing global environment.