Mexico has issued a stark warning that proposed tariffs by U.S. President-elect Donald Trump could result in significant job losses and price hikes on both sides of the border. Mexican President Claudia Sheinbaum announced on Wednesday that Mexico would retaliate if Trump implements a 25 percent across-the-board tariff, a move her government estimates could eliminate 400,000 American jobs and drive up costs for U.S. consumers.
“If there are U.S. tariffs, Mexico would also raise tariffs,” Sheinbaum declared during a press conference, signaling the country’s readiness to enact retaliatory trade measures against its largest trading partner. This statement marks her clearest indication yet of Mexico’s stance in the escalating trade tensions.
Speaking alongside Sheinbaum, Mexican Economy Minister Marcelo Ebrard emphasized the need for regional cooperation and integration rather than engaging in a trade war. “It’s a shot in the foot,” Ebrard said regarding Trump’s proposed tariffs, which appear to violate the United States-Mexico-Canada Agreement (USMCA).
Ebrard cautioned that the tariffs would lead to massive U.S. job losses, hinder economic growth, and adversely affect American companies manufacturing in Mexico by effectively doubling their tax burden. “The impact on companies is huge,” he noted.
The automotive industry, a cornerstone of cross-border trade, would be particularly affected. “The proposed tariffs would hit the automotive sector’s top cross-border exporters especially hard,” Ebrard added, naming Ford, General Motors, and Stellantis as companies that could face substantial challenges.
Ebrard highlighted that 88 percent of pickup trucks sold in the U.S. are made in Mexico and would likely see a price increase. These vehicles are especially popular in rural areas that overwhelmingly supported Trump in the election. “Our estimate is that the average price of these vehicles will increase by $3,000,” Ebrard said, underscoring the potential impact on American consumers.
Later on Wednesday, Sheinbaum and Trump spoke by phone, as the Mexican president shared on social-media platform X. She noted that they discussed “strengthening collaboration on security issues” and described the conversation as “excellent.”
Trump has stated that the tariffs would remain in effect until the flow of drugs\u2014particularly fentanyl\u2014and migrants into the U.S. is controlled. In response, Sheinbaum asserted that migrant caravans are no longer arriving at the U.S.-Mexico border “because they are attended to” in Mexico. Although a caravan of several thousand migrants had been moving through southern Mexico, numbers have dwindled in recent days.
Many analysts view Trump’s tariff threats as a strategic negotiating tactic rather than concrete trade policy. “The lack of a clear link between this threat and questions related to trade suggests the new president plans to use tariffs as a negotiating strategy to achieve goals largely unrelated to trade,” said David Kohl, chief economist at Julius Baer.
Reference(s):
cgtn.com
