### Alert on Industry Impact Due to Steel Tariff
The introduction of a 25% tariff on steel products could pose a significant threat to the economic dynamics along the border, according to Luis Delgado, president of the National Chamber of Electronics, Telecommunications, and Information Technology (Canieti) for the Northwest region.
“The manufacturing sector is concerned about the recent 25% tariff, significantly affecting our region. As a manufacturing-centric city, virtually every component integrates steel. The business community is now worried about the subsequent steps to take,” Delgado emphasized.
Delgado explained that the tariff will raise production costs and reduce the competitive edge of businesses within the border region. “A 25% tariff translates to a 25% additional cost on procurement and consumption, pushing us out of the market. International markets become more competitive, potentially displacing us as a manufacturing economy,” he stated.
He noted that steel is essential in various products, with a particular emphasis on refrigerators, televisions, watches, and computers. “Companies will need to look into automation to minimize initial consumption costs. This tariff affects not only the end consumer but also central manufacturing processes and employment within the sector,” he added.
Marco Antonio Esponda, the vice president of Canieti Northwest, recalled that in May 2024, the Mexican government issued a decree imposing a 25% tariff on sensitive materials such as adhesives, plastics, aluminum, and steel, excluding those originating from the United States or Canada. “We understand that the U.S. aims to protect its automotive industry, which is valid. However, we urge the Mexican government to respond more specifically to its trade partner, considering the broader impact on other sectors,” Esponda highlighted.
### Rising Cybercrime in Baja California According to Canieti
The rise in tariffs isn’t the only concern for businesses in Baja California. According to recent statements from Canieti, there’s been an uptick in cybercrime within the region. The vulnerabilities in IT infrastructure and the lack of stringent cybersecurity measures are leading to increased incidents, affecting both large and small enterprises. Businesses are advised to bolster their cybersecurity protocols to mitigate risks.
### Economic Impacts Beyond Tariffs
In related news, discussions about the cost of living in Tijuana highlight the city’s rank as one of Mexico’s most expensive cities. Residents are now facing increased financial pressures due to rising housing and commodity costs. Additionally, nearshoring—relocating business operations closer to home—hasn’t attracted as many companies as initially hoped, although it still presents positive impacts for the state.
These issues underscore the multiplicity of economic challenges facing the region amid global trade adjustments and internal cost dynamics.
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