SAN DIEGO (Border Report) — The maquiladora industry in Tijuana has reduced its collective work force by 20 percent due to tariffs imposed by the United States, according to José López Castellanos, director of LOGIX Business Development Group.
“Tariffs have affected us a lot and it’s been forcing our industry to reduce labor by 10, 12 up to 20 percent,” he said.
According to Tecma, which provides services to corporations along the border, there are just under 300,000 people employed by maquiladoras in Tijuana.
Maquiladoras assemble imported materials into finished products that are exported, primarily to the United States.
They provide companies with lower labor costs, most are based along the U.S.-Mexico border.
López Castellanos says the companies that have seen the biggest reduction in employees are those in metals, textiles and electronics.
He told reporters earlier this week that the aerospace and medical fabrication sectors continue to see growth by 12 to 14 percent and have been hiring those laid off in other areas.
“Both of these sectors employ about 100,000 people in Tijuana.”
Earlier this year, President Donald Trump imposed 25 percent tariffs on steel and 10 percent on aluminum exports coming out of Mexico.
Manufacturers of products that use these metals are feeling the effects of the tariffs, according to López Castellanos.
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