Mexico Stands Firm: Retaliation Looms Over Trump's Tariff Threat

Mexican President Claudia Sheinbaum announced Mexico's potential retaliation if the U.S. enacts proposed 25% tariffs, warning of U.S. job losses and economic disruption. Economy Minister Marcelo Ebrard highlighted the impact on the automotive industry and urged regional cooperation. Analysts predict severe consequences for U.S. automakers.

The Mexican government, led by President Claudia Sheinbaum, has made clear its intention to retaliate should the U.S. impose a 25% tariff, as proposed by President-elect Donald Trump. Sheinbaum's statement highlights a brewing trade conflict that could lead to significant economic repercussions in both countries.

Economy Minister Marcelo Ebrard joined Sheinbaum in condemning Trump's tariff plan, arguing that it goes against the USMCA trade agreement. Ebrard warned that the tariffs could result in substantial U.S. job losses and harm the automotive industry, affecting companies like Ford, General Motors, and Stellantis.

As Mexico prepares for possible retaliatory measures, experts and industry groups such as AMIA are assessing the potential impacts. The tariffs could severely disrupt the automotive sector, potentially wiping out profits for major U.S. automakers and increasing vehicle prices for consumers.

(With inputs from agencies.)