NM state treasurer says Trump’s proposed Mexico tariffs could be ‘damaging and destructive’ to local economy

New Mexico State Treasurer Laura Montoya called President Donald Trump’s proposed tariffs “damaging and destructive,” particularly for a state that heavily relies on imports from Mexico.

Montoya made her comments in a press call Thursday alongside state treasurers from California and Colorado, as well as a county treasurer in Arizona.

“It’s evident that our economy relies heavily on trade with Mexico,” Montoya said. “Trump’s tariff threats will suffocate our economy and disrupt our way of life.”

Trump, in his second term, has quickly deployed a series of tariffs that some say could severely damage the U.S. economy. On Thursday, the president ordered federal agencies to investigate plans for new reciprocal tariffs to boost America’s revenue. Earlier this month, he imposed a 10% tariff on all goods imported from China. He’s also imposing a 25% levy on all imports of steel and aluminum.

But of concern Thursday to Montoya was Trump’s proposed tax on imported goods from Mexico, which alongside a potential tax on Canada is on pause through early March.

Montoya said that Mexico is New Mexico’s largest trade partner, sourcing a quarter of all imports amounting to $2.5 billion per year, which aid in key industries like film, health care, oil and gas, agriculture, energy and construction.

“New Mexico largely relies on imports from Mexico to sustain these industries,” she said.

The oil and gas industry, in particular, relies on machinery and equipment from Mexico, Montoya added.

“With higher costs on these imports, drilling, production and industry development will slow and lead to higher gas prices,” Montoya said.

Montoya, who began as the state treasurer in 2023, also pointed to Mexico as key for agricultural trade. A report from the U.S. Department of Agriculture, updated in January, noted Mexico is the U.S.’s largest trading partner “in terms of combined exports and imports.”

Roughly 60% of New Mexicans live in rural communities, “many of which produce pecans, corn, beans, famous Hatch green chile, Dixon’s apples, pumpkins, dairy, wine, alfalfa, onions, papas, wheat, cotton and piñon,” Montoya said.

She added, “New Mexico ports process nearly a third of cattle imported from Mexico every year. Our agricultural industry will face blows as tariffs on cattle and produce will result in slowed food production and increased food insecurity.”

Mexico largely sends medical equipment to New Mexico, making up 40% of all imports to the state, according to data provided by Jerry Pacheco, president and CEO of the Santa Teresa-based Border Industrial Association. Tariffs on those products could be bad for the state’s health care system, Montoya said.

“Given that our largest import from Mexico is medical equipment, we can see health care become more expensive and inaccessible than ever before,” Montoya said.

Trump’s tariffs would also severely impact ports in California, which take in 40% of all containerized cargo entering the country, said California State Treasurer Fiona Ma. The Golden State is the fifth-largest economy in the world, importing about $61.5 billion in goods and exporting $33 billion annually, Ma added.

“These tariffs aren’t going to increase productivity. They will actually hurt our economy,” Ma said. “They will potentially eliminate jobs.”