Mexico Vows Swift Response to Trump’s Proposed Tariffs
Mexico’s President Claudia Sheinbaum and Economy Minister Marcelo Ebrard have issued strong warnings against President-elect Donald Trump’s proposed 25 percent tariffs on Mexican goods, threatening a swift response should the tariffs be implemented, Al Jazeera reports.
The Mexican government has estimated that these tariffs would cost the United States 400,000 jobs.
Trump announced on Monday his intention to impose the tariffs on Mexico, Canada, and China, citing concerns over irregular migration and drug smuggling. Ebrard called the proposed tariffs a potential trigger for a regional trade war, emphasizing the significant negative impact on US workers. He cited a study indicating the loss of approximately 400,000 US jobs, focusing on the automotive sector where many US vehicles are manufactured in Mexico. He further warned that the tariffs would increase the price of a new vehicle by roughly $3,000, directly impacting US consumers.
Sheinbaum, in a press conference on Wednesday, stated that Mexico would respond quickly if Trump follows through on his threat. She revealed that she had spoken to Trump directly by phone, attempting to alleviate his concerns about border migration. She had previously described Trump’s tariff threats as “unacceptable.”
Mexican officials have also raised concerns that the proposed tariffs violate the USMCA (United States-Mexico-Canada Agreement), a free trade agreement that prohibits most duties on trade between the three countries. Trump himself renegotiated the USMCA during his first term. Sheinbaum has requested a meeting with Trump before his inauguration on January 20.
Canadian Prime Minister Justin Trudeau has also spoken with Trump about the tariff threat, highlighting the long-standing relationship between the two countries.
Financial analysts share the Mexican government’s concerns. Barclays analysts estimate that the tariffs could eliminate all profits for the “Detroit Three” automakers – GM, Stellantis, and Ford.
Brian Hughes, a spokesperson for Trump’s transition team, defended the proposed tariffs, arguing they would protect US manufacturers and workers from “unfair practices of foreign companies and foreign markets.” He maintained that Trump’s policies would create a more prosperous and affordable life for Americans.
