Mexican President Sheinbaum Warns Trump’s Tariff Threats Will Backfire, Hints at Retaliation

Mexican President Claudia Sheinbaum cautioned U.S. President-elect Donald Trump on Tuesday about the severe economic repercussions of his proposed 25% tariffs on Mexican and Canadian imports. Speaking at a press conference, Sheinbaum criticised the plan, warning it could spark a retaliatory cycle and endanger shared economic interests.

“To one tariff will follow another in response, and so on, until we put our common businesses at risk,” Sheinbaum said in a letter she read publicly, which she plans to send to Trump. She said that such measures would likely lead to inflation and widespread job losses on both sides of the border.

Sheinbaum also announced her intention to request a call with Trump and reach out to Canadian Prime Minister Justin Trudeau to discuss the issue.

Trump’s tariff proposal, announced on Monday, is intended to pressure Mexico and Canada into addressing illegal drug trafficking—particularly fentanyl—and curbing migrant crossings at the U.S. border.

Mexico currently stands as the United States’ top trade partner, accounting for 15.8% of total trade as of September, with Canada following at 13.9%. Sheinbaum argued that escalating tariffs would especially harm U.S. automakers with manufacturing facilities in Mexico, such as General Motors and Ford, and could disrupt Mexico’s critical automotive sector, which represents over 35% of its manufacturing exports.

The United States-Mexico-Canada Agreement (USMCA), a trade deal signed during Trump’s first term in 2020, could also be at risk of violation if such tariffs are imposed.

Sheinbaum highlighted Mexico’s efforts to combat the U.S. fentanyl epidemic, reduce migrant apprehensions at the border, and halt caravan arrivals. However, she criticised the lack of accountability for U.S. weapons flowing into Mexico, fuelling violence.