Mexico Threatens Retaliation Over Trump’s Proposed Tariffs

Mexico has warned that U.S. President-elect Donald Trump’s proposed 25% tariffs on imports could result in the loss of 400,000 U.S. jobs and higher prices for American consumers.Economy Minister Marcelo Ebrard explained that the tariffs would hurt U.S. companies operating in Mexico and U.S. consumers, especially in the automotive industry. “88% of pickup trucks sold in the U.S. are made in Mexico,” Ebrard pointed out, adding that the price of these vehicles could increase by $3,000.

Trump has made it clear that the tariffs would remain until Mexico takes action to control the flow of drugs and migrants into the U.S. In response, Sheinbaum reiterated on Wednesday during her presidential morning briefing that Mexico would retaliate if Trump proceeds with the tariffs. “If there are U.S. tariffs, Mexico would also raise tariffs,” she stated, signalling Mexico’s readiness to act against its key trade partner.

Following the discussions, the Mexican peso strengthened, despite concerns over the economic impact of the tariffs. Analysts believe Trump’s tariff threats are more of a negotiation tactic than a definitive trade policy.

Ebrard stated that Mexico values regional cooperation over conflict, stating, “Mexico does not want conflicts and divisions but to build a stronger region.”