<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Mexico has celebrated having dodged the latest round of tariffs from the White House taking aim at dozens of US trading partners around the world, but has also been quickly reminded that in a global economy the effects of uncertainty can't be entirely avoided.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>President Claudia Sheinbaum said overnight that the free-trade agreement signed by Mexico, Canada and the US during Trump's first administration had shielded Mexico.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Now her government will focus on the existing 25 per cent US tariffs on imported autos, steel and aluminium, while accelerating domestic production to safeguard jobs and reduce imports.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/donald-trump-tariffs-reciprocal-measures-what-are-they-retaliating-against-explained/c90a020c-70d4-47fa-8a42-f8954665783b" target="_blank"><strong><span>Trump used one key word to justify tariffs. The facts don't back him up</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"During my last call with President Trump, I said that, in the case of reciprocal tariffs, my understanding was that there wouldn't be tariffs [on Mexico], because Mexico doesn't place tariffs on the United States," Sheinbaum said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Economy Secretary Marcelo Ebrard noted that despite having free-trade agreements with the US, many countries were targeted by the tariffs US President Donald Trump announced yesterday on what he dubbed "Liberation Day". Trump framed the tariffs as a way to bring manufacturing jobs back to the U.S.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Noting that Mexico dodged the latest round of tariffs, Ebrard said swaths of Mexican exports including agricultural products like avocados, clothing and electronics will continue to enter the US without import duties.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/world/donald-trump-liberation-day-mexico-celebrates-dodging-latest-us-tariffs-but-feels-the-effects-of-global-economic/7bb5cfcf-f9b2-4415-9173-83b806222b68" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sheinbaum, meanwhile, encouraged companies producing in Mexico who had not been exporting under the free-trade agreement for various reasons to take the necessary steps to qualify. She cited major German auto producers as an example.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Qualifying for the free-trade agreement could involve anything from doing paperwork to making adjustments to the sourcing of a product.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite Trump's latest tariffs not being imposed on Mexico, the uncertainty they created and the interconnectedness of the North American auto supply chains meant it didn't take long for the effects to touch Mexico.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/donald-trump-tariffs-norfolk-island-australia-export-tariffs-stock-market-finance-news/be1d5184-f7a2-492b-a6e0-77f10b02665d" target="_blank"><strong><span>Tiny Australian island's tariffs are nearly triple the rest of the country</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Stellantis, maker of auto brands including Dodge and Jeep, announced that it would pause production at its assembly plant in Toluca west of Mexico City for the month of April while it assesses the tariffs' impact on its operations. A similar temporary production halt was scheduled for an assembly plant in Canada and some 900 workers were to be temporarily laid off across several plants in the United States.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That uncertainty is part of the reasons why Sheinbaum is pushing Plan Mexico, an initiative to promote and cultivate more domestic production.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As an example, she cited a collaboration between her government, local universities and Mexican companies Megaflux and Dina to produce electric buses for public transportation.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Ebrard said recently that the buses represent not only a technological advance in Mexico, but also a "strategic decision" in favor of Mexico's industrial sovereignty.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>At a factory in Mexico City, the electric buses called Taruk — trail-runner in the Indigenous Yaqui language – are already in production. Megaflux Director General Roberto Gottfried said the company hopes to deliver some 200 by year's end.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He noted that some 70% of the Taruk's components are produced in Mexico, including its motor, but the lithium batteries that power them come from China.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In a country where one out of every three people use public transportation every day, developing this sector domestically is critical, Gottfried said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite the global economic challenges presented by the uncertainty caused by tariffs, he said, Mexico's large internal market gives the initiative a competitive advantage to develop and weather the storm.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><em><span>DOWNLOAD THE 9NEWS APP</span></em></a><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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