New US tariffs on Mexican goods have ignited fears of a retaliatory trade war, with Mexico signaling plans to impose countermeasures by Sunday. The move threatens to disrupt one of North America’s most vital economic partnerships, as Mexico is the second-largest trading partner for the US, with bilateral trade exceeding $650 billion annually.
Analysts warn that escalating tensions could ripple through global supply chains, particularly affecting industries like automotive manufacturing and agriculture. “The immediate impact is higher costs for businesses and consumers, but the long-term risks include slowed economic growth and investment uncertainty,” said a Mexico City-based economist.
Mexican officials are evaluating strategies to mitigate the tariffs’ impact while safeguarding domestic industries. Reports suggest targeted levies on US agricultural exports and manufactured goods could form part of the response.
For global markets, the dispute underscores deepening trade fractures as nations reassess economic dependencies. Investors are closely monitoring negotiations, with Asian economies particularly wary of spillover effects on regional export networks.
