California and Sonora Sign Climate and Trade MOU Amid Tariff Concerns

California’s Governor Gavin Newsom signed an MOU with Sonora’s Governor Durazo on climate change and trade. This agreement comes before Trump’s planned reciprocal tariffs and highlights California’s significant export relationship with Mexico, which comprises 19% of its markets. Sonora plays a crucial role in electronics and automotive manufacturing.

California has recently signed a memorandum of understanding (MOU) on climate change and trade with Governor Alfonso Durazo Montano of Sonora, Mexico. This agreement comes amid mounting tension as the Trump administration readies to implement reciprocal tariffs on U.S. trade partners. The MOU aims to address climate challenges while fostering collaboration between the two regions.

During the signing event in Sacramento, Governor Gavin Newsom emphasized the importance of advancing climate initiatives. He highlighted the ongoing effects of climate change, including recent wildfires in Los Angeles, but did not detail the specific collaborative efforts that will stem from this MOU.

The timing of the MOU coincides with President Trump’s plans to impose tariffs that mirror the taxes other countries levy against the U.S. It also follows a recent tariff exemption for Mexican goods under the U.S.-Mexico-Canada Agreement (USMCA). Mexico remains California’s largest export market, consuming nearly 19% of the state’s exports, which totaled $33 billion in 2024.

California’s primary exports to Mexico consist of computers, electronic products, machinery, and transportation equipment. Conversely, Mexican imports through California include vehicles, medical devices, appliances, and vegetables. Notably, Sonora is a leading producer of copper and serves as a key hub for electronic and automotive manufacturing, especially in electric vehicles.

The MOU between California and Sonora marks a strategic collaboration aimed at addressing climate change and enhancing trade amidst the impending tariffs from the Trump administration. This partnership underscores California’s commitment to climate initiatives while maintaining strong economic ties with Mexico, which significantly contributes to California’s export market.

Original Source: ny1.com