'America First' achieves trade and political victory over China in Mexico

Mexico has announced 50 percent trade tariffs against China. This measure is neither cosmetic nor merely commercial. Rather, it marks an unprecedented shift and grants a commercial and political victory to President Trump's America First policy.

The U.S. is not losing allies — it is renewing, regaining and reinforcing its political and economic alliances in the world, starting at home, the Western Hemisphere.

The 50 percent tariff on extracontinental superpowers like China is a bold move by Mexican President Claudia Sheinbaum. It seeks to close ranks in alliance with the U.S. against a common threat: the unfair and unbalanced trade policies of China.

Last year alone, China exported $129.7 billion to Mexico, while the latter exported only $9.9 billion back. China is flooding the Mexican and U.S. markets with millions of subsidized, low-quality products, causing the closing of companies that pay taxes and play by the rules.

Mexico, like the U.S., seeks to accelerate local industries and job creation. These $129 billion that are going to China could be redirected to promote Mexican businesses, create jobs, and increase production. Billions of dollars that currently go to China could be used to buy products made in America, creating more jobs and strengthening the industry. Mexico wins, and the U.S. wins.

The America First Policy means a change of paradigm. For those who thought that doing trade with China was the key to success, Mexico's position reaffirms that investing in a strong trade alliance with the United States is the right decision, commercially and politically. It is important to remember that Mexico is one of the 15 largest economies in the world and the main U.S. trading partner. Its firm position against Chinese abuses has already had a profound effect, not only in Latin America but worldwide.

In response to Mexico's announcement, Beijing reacted with fury, not diplomacy. It removed its mask and issued a strong warning: "China hopes Mexico will exercise caution and think twice before making any tariff adjustment," stated China’s Department of Commerce.

Mexico's decision was commercial but also political, and it speaks volumes about the new alliance it has with the U.S. It would also impose tariffs on 1,400 products from India, Russia, Turkey, and other countries. These tariffs seek to protect industry, increase consumption, and preserve 325,000 jobs.

The U.S. neighbor is reviewing and reversing many of its ties and business dealings with China thanks to the new administration. Earlier this year, BYD, the world's largest electric car company, announced that it had canceled the construction a multi-million-dollar electric vehicle plant in Mexico. The project would have the capacity to produce up to 150,000 cars per year generating millions of dollars for the Asian superpower. Now this project is over, and new opportunities are open to U.S. investment.

The victories of the America First policy go above and beyond the Mexican borders. In Ecuador's mining sector, China suffered yet another massive setback. The firm Terraearth Resources lost four projects. In Chile, BYD and Tsingshan canceled plans to build lithium processing plants. Lithium is essential for electric cars and is considered a strategic asset for trade and security issues. In Panama, China’s Belt and Road Initiative is dead. This is something we have never seen before ... until now. Panama is also replacing Chinese telecommunication technology for high tech equipment made in America.

China still has a malign influence in the region, moving fentanyl precursors, laundering money, and spying using technology. But the changes are starting to take place faster than expected. China is not losing just money. No. It is losing a foothold in the America's backyard.

This is a matter of security, investments, jobs, geopolitics and leadership. Today, the U.S. is back, and it sounds like good news.

Arturo McFields is an exiled journalist, former Nicaraguan ambassador to the Organization of American States, and a former member of the Norwegian Peace Corps. He is an alumnus of the National Defense University’s Security and Defense Seminar and the Harvard Leadership course.