Metalworking investment in Puebla halted by tariffs

Due to the US government's imposition of tariffs on steel, aluminum, and auto parts, 60% of the 60 companies that make up the Metalworking Cluster (Metalclus) in Puebla are being affected by the cancellation of orders in the neighboring country to the north. In addition, investment projects are on hold.
Horacio Peredo Elguero, president of the Cluster, described the situation as worrying, because orders placed up to a month in advance are now sitting in warehouses.
He indicated that suppliers to the automotive and white goods industries are also being harmed. In addition, those firms that do not yet fully comply with the regional content rules established in the Treaty between United States, Mexico and Canada (USMCA) are also being affected.
“Companies that adapted their production to the conditions of the USMCA are not feeling the impact of the tariffs, while those that continue to import inputs from countries outside the region are facing greater difficulties, with the cancellation of important orders,” he added.
Peredo Elguero indicated that they foresaw this situation when President Donald Trump imposed tariffs on steel, aluminum, and auto parts.
The former president of the National Chamber of the Transformation Industry (Canacintra) in Puebla urged the federal government to assume its role in negotiations with the United States, because the metalworking sector in general is affected, as all entities with significant participation are suffering economic losses.
He pointed out that there have been no layoffs yet, as they are trying to avoid that situation for the rest of the year, but it will depend on each Metalclus member company, which together generate around 400 direct jobs.
However, he added, there could be up to 2,000 if the large corporations with plants in Puebla are taken into account.