Mexican households shedding jobs of their hundreds on account of Trump tariffs | EUROtoday

For 11 years, Fabiola Galicia labored her approach up the ranks at a manufacturing unit that produced ornamental ribbons in Ciudad Juarez, simply throughout the border from El Paso, Texas. Starting as a manufacturing line employee, she was finally promoted to supervisor overseeing 30 staff.

But in June, her shift was lower to only three days per week. Then in August, a consultant for Design Group Americas, which filed for chapter safety final month, shut down its Ciudad Juarez manufacturing unit, leaving Galicia and a few 300 different staff with out jobs.

In courtroom filings, the corporate partially blamed its troubles on tariffs imposed by U.S. President Donald Trump. Galicia stated an organization consultant additionally blamed Trump. “They told us the tariffs had affected the company,” stated Galicia, whose husband additionally labored on the firm and was laid off.

Design Group Americas didn’t reply to a request for remark concerning the layoffs.

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Assembly crops in Ciudad Juarez, which import uncooked supplies principally responsibility free from around the globe and export the completed product to the U.S., are in disaster. Trump’s international commerce battle has added distress to an business already dealing with a litany of challenges together with rising wages and investor concern over reforms by Mexico’s ruling leftist Morena occasion.

Known as maquiladoras, the crops account for roughly 60 % of jobs in Ciudad Juarez. For many years probably the most vital manufacturing hubs in Mexico, the town’s industrial sector benefited lately as giant numbers of multinational corporations moved operations to Mexico to keep away from U.S. tariffs on Chinese-produced merchandise in a development dubbed ‘nearshoring.’

But after booming progress and employment, many crops at the moment are shedding staff and in some instances shutting down altogether.

Between June 2023 and June 2025, the municipality of Juarez misplaced greater than 64,000 manufacturing unit jobs, together with almost 14,000 within the first six months of the 12 months, based on Mexico’s National Institute of Statistics and Geography.

Cherry on high

The mass layoffs underscore the challenges dealing with Mexico’s financial system, which is determined by free commerce with the U.S.

Projected GDP progress for 2025 has stalled to lower than one % as corporations wrestle to remain afloat amid Trump’s on-again, off-again tariffs.

Maria Teresa Delgado, vice chairman of the maquila affiliation INDEX Juarez, stated the business is in “crisis.” Besides tariffs, she and 6 different enterprise specialists attributed the layoffs in Juarez to a mixture of things.

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Factories skilled a decline in revenue margins following a federally mandated improve within the minimal wage, they stated. The minimal wage in Mexico’s northern area has risen since 2019 from 22 pesos an hour ($1.17) to 52.48 pesos ($2.80).

Then, in 2023, Mexico’s former president proposed a serious judicial reform–to exchange appointed judges with elected judges, elevating alarm amongst overseas traders and hampering funding due to the menace to judicial independence. The reform was enacted this 12 months.

But Trump’s commerce battle was the tipping level, Delgado stated. While a majority of Mexican exports enter the U.S. responsibility free, there are excessive tariffs on the automotive business and merchandise like metal, aluminum and a few textiles.

“Trump’s tariffs were the cherry on top,” Delgado stated concerning the layoffs.

Foreign direct funding in Mexico fell 21% within the first quarter of 2025 in comparison with the identical interval a 12 months earlier than. In the state of Chihuahua, the place Ciudad Juarez is positioned, overseas direct funding in manufacturing declined 56%, from $800 million to $348 million.

“Uncertainty is impacting the business environment,” stated Ulises Alejandro Fernandez, Chihuahua’s Secretary of Innovation and Economic Development. “Companies are holding off on making decisions and making new investments until there is clarity about what will happen with trade policy.”

Some corporations are already pulling out of Ciudad Juarez as they transfer to nations with decrease labor prices or resolve to spend money on the U.S. to keep away from tariffs.

Earlier this 12 months, automotive parts-maker Lear Corp introduced it is going to relocate some manufacturing strains from Ciudad Juarez to Honduras, in what it described as a broader technique to scale back prices amid shifting demand and rising wages in Mexico’s northern border area.

French electronics producer Lacroix plans to close down its operations in Ciudad Juarez by the tip of this 12 months. The firm cited sustained losses and commerce uncertainty as key causes for its exit from North America.

Thor Salayandia, president of the regional enterprise coalition Border Block Trade, stated he has needed to lower staff at his {hardware} manufacturing unit in Ciudad Juarez that produces nails. He now has 20 staff, down from round 90 in 2023, he stated.

“Clients are cutting costs. One day they place an order, the next they don’t.”