Mexico’s top diplomat to the Southeastern United States is raising concerns over the potential economic impact of a trade war, warning that it would significantly affect Georgia’s industries.
Consul General Javier Díaz de León emphasized that Mexico is the second-largest buyer of goods from Georgia, trailing only Canada. The total trade between the U.S. and Mexico currently stands at $840 billion.
“Why does Georgia sell to Mexico? I’ll tell you why,” Díaz de León stated. “We buy peaches, but it’s not really peaches; it’s electronic machinery, turbo propellers, and aircraft parts.”
A proposed 25% tariff on most goods is set to take effect on April 2, barring another delay. Díaz de León stressed that the economic consequences would extend far beyond produce prices, cautioning that such tariffs would raise costs on essential goods.
“We’re talking about the price of your cars,” he said. “We’re talking about the price of how much you’re going to spend paying for parts for your cars.”
In addition to automobiles, the tariffs would also impact electronics and aircraft parts, two of Georgia’s key export sectors. Last year, Georgia exported nearly $6.5 billion in goods to Mexico.
With trade between Georgia and Mexico playing a crucial role in the state’s economy, Díaz de León warns that a trade war would disrupt industries in both countries, potentially leading to higher costs for consumers and economic instability.
The situation is still unfolding as leaders decide what the tariffs could mean before the April 2 deadline.