New minimum wage in Nogales, Sonora helps keep pace with inflation
By Daisy Zavala Magaña
Some residents in Nogales, Sonora saw their minimum wages increase at the start of this year – culminating an effort by Mexican President Andres Manuel Lopez Obrador to boost the economy through wage and tax reforms.
In 2019, Lopez Obrador kicked off the “Zona Libre de la Frontera Norte,” or “Northern Border Free Zone,” which doubled the minimum wage for residents throughout a 25-kilometer (15.5 miles) region along Mexico’s northern border. Since he took office, that daily minimum wage has been increased six consecutive times, bringing it from 88 pesos in 2018 to 375 pesos (roughly $22) this year.
Speaking to the NI this week, several Nogales, Sonora residents highlighted the main result of Lopez Obrador’s efforts: The higher wages allow locals to keep up with inflation, but they don’t provide much more to afford additional expenses.
“It’s kind of like you’re still earning at the same rate because as the wage increases, so do the expenses,” said Miriam Estrella, a 25-year-old employee at La Michoacana, a snack shop in downtown Nogales, Sonora. She noted the higher wages keep her from falling behind on payments, but don’t provide wiggle room for expenses beyond basic necessities.
Ruth Arce, a 51-year-old resident who said she was already earning slightly more than the minimum wage at $400 per day, echoed Estrella’s sentiment.
Morley retailers see slow impact of tariffs on Chinese imports
By Daisy Zavala Magaña
Pedestrian traffic along Morley Avenue remained flat last Friday afternoon – a time of the week that would typically be among the busiest for retailers that rely on Mexican shoppers.
But downtown business owners have described a myriad of reasons for the decline in Mexican customers in recent months: President Donald Trump’s hateful rhetoric towards Mexican immigrants, economic instability amid threats of tariffs, a fluctuating peso value, and long wait times to enter the United States.
That decrease in traffic resulted in slow sales for Morley businesses. At Felix Warehouse, for instance, owner Jorge Felix said he had registered zero sales as of 3 p.m. last Friday.
“I’ve been here 29 years and never seen it like this,” Felix said. “I’ve heard (Mexican) customers are reluctant to support U.S. businesses.”
Produce importers urge for tariff ‘certainty’ during Hobbs, Ciscomani visits
By Daisy Zavala Magaña
Local produce stakeholders met with Gov. Katie Hobbs and a Republican congressional delegation led by Rep. Juan Ciscomani in separate visits around Nogales on Friday. The purpose? To discuss concerns and likely impacts of the looming tariffs on Mexican imports, and for newly elected legislators to learn more about the U.S.-Mexico border.
Hobbs said she planned to take those concerns up to federal officials whilst maintaining an ongoing dialogue with members of the produce industry. For his part, Ciscomani was expected to relay concerns to the Office of the United States Trade Representative at an upcoming meeting.
“For our economy to be successful… there has to be predictability,” Hobbs said. “And this back-and-forth on the tariffs is just creating chaos and Arizonans are paying the cost of that.”