Mexico’s footwear industry could benefit from US tariffs. But it’s not

Juan Alvarado, a small shoe manufacturing business owner in Leon, Guanajuato, Mexico, is facing challenges due to US tariffs on Mexican goods. The current 25% tariff on cars and 50% tariff on steel, aluminum, and copper, as well as the 90-day extension set to expire on October 31, are affecting his business. Despite being a beneficiary of the USMCA, which covers some exports with zero percent tariffs, Alvarado's industry has seen declining competitiveness against Asian countries for decades. The Chamber of the Footwear Industry of the State of Guanajuato reports that Mexico produced 134 million pairs of shoes by the end of August, down from 214 million last year. The US tariffs have created uncertainty and halted production at one of Alvarado's main customers, forcing him to reconsider his business strategy or diversify into other sectors.

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