Sheinbaum Warns Tariff Tensions Could Ignite Economic Fallout

Mexican President Claudia Sheinbaum cautioned U.S. President-elect Donald Trump against imposing a 25% tariff on Mexican imports, citing potential economic damage for both countries. Such tariffs could endanger bilateral trade, particularly affecting the automotive industry and possibly violating existing trade agreements. Mexico is prepared to retaliate if necessary.

Mexican President Claudia Sheinbaum issued a stark warning to U.S. President-elect Donald Trump about the possible economic repercussions of his proposed 25% tariff on imports from Mexico and Canada. Sheinbaum highlighted the risks of inflamed trade confrontations that could jeopardize businesses on both sides of the border.

Sheinbaum planned to discuss the issue further with Trump and Canadian Prime Minister Justin Trudeau, emphasizing the role of Mexico as the United States' top trade partner. The tariffs, if imposed, could significantly impact U.S. automakers with operations in Mexico, with General Motors and Ford among those potentially affected.

Mexico's automotive sector, crucial to its economy, could find itself at odds with the United States-Mexico-Canada Agreement. Sheinbaum stressed Mexico's efforts to combat drug trafficking and manage border migrants, pointing to ongoing challenges with weapons flow from the U.S. as a shared issue.

(With inputs from agencies.)