Mexican President Claudia Sheinbaum stated on Wednesday that Mexico would respond with its own tariffs if U.S. President-elect Donald Trump implements his proposed 25% across-the-board tariff.
Her government warned that such a move could eliminate 400,000 U.S. jobs and significantly raise prices for American consumers.
“If there are U.S. tariffs, Mexico would also raise tariffs,” Sheinbaum said during a press conference, marking her clearest indication yet that Mexico is preparing retaliatory trade measures against its largest trading partner.
Mexico calls for cooperation
Mexican Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, emphasized the importance of regional cooperation rather than engaging in a retaliatory trade war.
“It’s a shot in the foot,” Ebrard said of Trump’s proposed tariffs, which he argued could violate the USMCA trade agreement between Mexico, Canada, and the United States.
Ebrard warned the tariffs would lead to significant U.S. job losses, reduced economic growth, and higher costs for U.S. companies producing goods in Mexico.
“The impact on companies is huge,” he noted.
Automotive industry at risk
Ebrard highlighted that the automotive sector would be particularly affected, especially top cross-border exporters like Ford, General Motors, and Stellantis.
He pointed out that 88% of pickup trucks sold in the U.S. are made in Mexico and would face a $3,000 price increase, disproportionately affecting rural areas that strongly supported Trump.
Talks between leaders
Sheinbaum and Trump spoke by phone later on Wednesday.
Trump claimed that Sheinbaum had “agreed to stop migration through Mexico, and into the United States, effectively closing our Southern Border,” calling the conversation “very productive.”
Sheinbaum later clarified on X that Mexico’s migration strategy focuses on addressing issues before migrants reach the U.S. border.
“Mexico’s stance is not to close borders, but to build bridges between governments and their peoples,” she said.
In after-hours trading, the Mexican peso strengthened nearly 1% against the dollar, recovering from earlier losses.
Analysts suggest Trump’s tariff threats may be more of a negotiating tactic than concrete policy.