Sheinbaum Launches "Plan México" to Mitigate Potential Trump Tariffs
Faced with the potential economic impact of tariffs imposed by the United States, President Claudia Sheinbaum is unveiling a comprehensive strategy known as "Plan México." This initiative encompasses 18 key strategies designed to bolster the internal market, reduce poverty and inequality, increase energy sovereignty, accelerate infrastructure projects, and consolidate housing construction. The plan is being presented as a proactive response to potential economic challenges arising from international trade relations.
Strengthening the Internal Market
At the heart of "Plan México" lies a commitment to strengthening the domestic market. Sheinbaum emphasized the country's robust Investment Portfolio, already exceeding $200 billion, and the implementation of a Digital Window to streamline bureaucratic processes. These measures are intended to encourage investment and facilitate business operations within Mexico. Furthermore, the government plans to launch a tender for 15 Welfare Hubs (“Polos de Bienestar”) on May 19th, offering significant tax incentives to businesses investing in these development zones. According to Grupo Milenio (milenio.com), these incentives include a 100% deduction of new fixed assets, a 25% deduction for training and innovation, and a temporary elimination of Income Tax (ISR).
Job Creation and Social Programs
Recognizing the importance of employment, the plan includes initiatives to create at least 100,000 new jobs through the National Employment Service. Additionally, the government is planning to launch a program offering facilities to small businesses, as well as a permanent renewal of the anti-inflation package and basic basket, maintaining the increase in the minimum wage. The expansion of social programs is also a central component, aiming to provide support to vulnerable populations and reduce inequality.
«El Plan México es el camino que —estoy segura— nos llevará a un país con más empleo bien remunerado, con menor pobreza y desigualdad, con mayor inversión y producción, con más innovación y menos carbono, que respete al medio ambiente y aumente nuestra autosuficiencia y soberanía», stated President Sheinbaum at the Museo de Antropología (Sheinbaum, as cited in Milenio, n.d.).
Key Pillars of the Plan
The 18-point plan includes specific timelines for decree publication and implementation, starting with the expansion of food self-sufficiency by increasing the production of white corn, beans, rice, and milk. Energy self-sufficiency is another key priority, with a targeted 30% increase in the production of gasoline, diesel, and jet fuel. The plan also aims to reduce natural gas imports from 3.834 to 5 billion cubic feet per day through sustainable recovery methods.
Investments in the Federal Electricity Commission (CFE) will be accelerated, along with the initiation of 59 projects to strengthen the national grid. Public works projects will be expedited to create 500,000 direct jobs in 2025, including the maintenance of 44,000 kilometers of the federal highway network and the construction of 11 road distributors, 114 artisanal roads, and 37 water projects, as well as the Mexico-Pachuca and Mexico-Querétaro trains. The start of the Maya Train for cargo to Progreso, Yucatán, and the construction of 178 kilometers of the Interoceanic Train are also included. Furthermore, 11 ports across the country will be expanded, and improvements will be made to 60 airports with an investment of 35 billion pesos this year.
Furthermore, housing construction will be accelerated, increasing from 130,000 to 180,000 houses during 2025. To combat tariffs on aluminum and steel, the textile, footwear, furniture, clothing, and toy industries will be strengthened with measures that will be detailed in a decree to be published on May 5th.
Boosting National Industries
The plan emphasizes the strengthening, innovation, and research to ensure that most vehicles consumed in Mexico are also manufactured domestically. National production of petrochemicals, pharmaceuticals, medical equipment, and fertilizers will be intensified. A greater investment in scientific and technological research is included in the strategy, in addition to financing for micro and small businesses with facilities to be announced on May 9th. According to Armando Martínez and Gaspar Vela (n.d.), authors from Grupo Milenio (milenio.com), “the strategy includes greater investment in scientific and technological research”.
Support and Recognition
President Sheinbaum presented the plan with the support of governors, her legal and extended cabinet, legislators, representatives of indigenous communities, and business leaders. Attendees included Francisco D. González Albuerne, Executive President of Grupo Multimedios; Francisco Cervantes, leader of the Business Coordinating Council; Carlos Slim, head of the Board of Directors of Grupo Sanborns; Arturo Elías Ayub, General Director of Fundación Telmex; Claudio X. González, owner of Kimberly-Clark, and Rodrigo Herrera, owner of Genomma Lab, among others.
T-MEC and Dialogue with the U.S.
Sheinbaum committed to doing everything in her power, highlighting that the United States recognized the USMCA with the exclusion of Mexico from reciprocal tariffs. She expressed confidence that a good agreement on tariffs for steel, aluminum, and the automotive industry can be reached. «Hubo algo muy importante, que es el reconocimiento del T-MEC, por supuesto hay temas pendientes (...) pero creemos que con el diálogo (con EU) podemos tener un mejor acuerdo», she emphasized.
Sectors Exempt from Tariffs
Economy Secretary Marcelo Ebrard highlighted the recognition of the USMCA by U.S. President Donald Trump following the imposition of reciprocal tariffs on all countries as a major achievement. He noted that nearly 85 percent of national products exported to the U.S. were exempt from tariffs thanks to this treaty. The sectors exempt from tariffs include agri-food, electrical manufactures, chemicals, clothing, footwear, medical and pharmaceutical devices, and machinery.
Ebrard, M. (n.d.). Grupo Milenio. https://www.milenio.com
