Trade Turmoil: Ciudad Juarez Factories Struggle Amid Trump's Tariffs
The Ciudad Juarez factory sector faces a crisis after U.S. tariffs, with mass layoffs and shutdowns. The maquiladoras, which were once thriving due to nearshoring, are struggling due to increased tariffs, rising wages, and judicial reforms. Foreign investments and GDP growth projections have dropped significantly.
The factory sector in Ciudad Juarez is grappling with a severe crisis following the imposition of U.S. tariffs, leading to mass layoffs and plant shutdowns. Once flourishing due to nearshoring, the maquiladoras are now struggling with heightened tariffs, rising wages, and judicial reforms.
The impact on the local economy is stark, as foreign investment plummets and GDP growth projections remain stagnant. Fabiola Galicia, a former manager at a decorative ribbon factory, is among hundreds who lost their jobs when Design Group Americas shut down its operations, citing the tariffs as a significant factor.
Economists and industry experts attribute the downturn to a combination of factors, including the federally mandated wage increase and trade uncertainties. With companies relocating to countries with lower labor costs, the future of Ciudad Juarez's industrial sector hangs in the balance.
(With inputs from agencies.)
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