"Juan Alvarado has owned a small shoe manufacturing business in Leon, Guanajuato, Mexico's shoe manufacturing capital, for more than 15 years. But the current trade and political tensions in US-Mexico relations, coupled with tariff-related disruptions, are forcing him to consider diversifying into other sectors or simply shutting down his business. Alvarado told Al Jazeera that he would typically employ up to 25 people, but he's had to cut that down to 15 now."
"Mexico continues to face a 25 percent tariff on cars and a 50 percent tariff on steel, aluminium, and copper, and 25 percent on anything not covered under the 2020 free trade US-Mexico-Canada Agreement (USMCA). For Mexican industries like footwear, which has faced declining competitiveness against Asian countries for decades, the tariffs the US has imposed on other nations are seen as an advantage for gaining a stronger foothold with Mexico's top trading partner."
Juan Alvarado runs a small shoe manufacturing firm in León that has reduced staff from 25 to 15 due to trade and tariff pressures. US tariffs on cars, steel, aluminum, copper and non-USMCA goods, and a temporary 90-day extension, create uncertainty for exporters. Footwear faces long-term competitiveness erosion against Asia, but US tariffs on other countries can advantage Mexican exporters covered by USMCA with zero tariffs if rules of origin are met. Outdated domestic policies, corruption, and lack of investment hinder the sector's ability to scale and capture increased US market share.
Read at www.aljazeera.com
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