In a press conference held this Thursday, April 10, 2025, U.S. President Donald Trump confirmed that three automotive plants that were to be built in Mexico have been cancelled, and will now be installed in U.S. territory, and although the announcement represents an economic blow to Mexico, Trump openly praised President Claudia Sheinbaum, whom he described as a “terrific, fantastic and very elegant” person.
“I am not looking to harm Mexico, I like Mexico. And I think the new president is an extraordinary woman,” the president told the media. According to Trump, he has had constant conversations with Sheinbaum, whom he described as “kind and very professional.”
Strategic change
Buzzy
The President explained that the change of plans regarding the automotive plants is due to his domestic reindustrialization strategy.
He seeks to strengthen employment in the U.S. “We have lost 90,000 plants and factories since T-MEC went into effect. That should never have happened,” he said.
Trump directly linked the impact of the Mexico-U.S.-Canada Agreement(T-MEC) to an alleged loss of 6 million jobs in the country.
Although he did not present updated data to support this figure, he reiterated that his government will seek to repatriate investments and revitalize the domestic manufacturing sector.
The measure was announced a day after the White House temporarily suspended tariffs on 75 countries, a decision that also benefits Mexico in the short term.
Despite the conciliatory tone towards Sheinbaum, trade tensions between the two governments could escalate if bilateral cooperation is perceived to be affected.
Mixed reactions
To date, the Mexican government has not issued an official statement regarding the cancellation of the plants.
However, analysts have pointed out that such decisions can have cascading effects on foreign investment.
I'm not looking to harm Mexico, I like Mexico
Donald Trump
Especially in the automotive sector, which represents more than 3.5% of Mexico’s GDP and generates millions of direct and indirect jobs.
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