Trade Tensions: Mexico vs. Trump's Tariff Plans

Mexican President Claudia Sheinbaum warned of retaliatory tariffs if U.S. President-elect Donald Trump imposes proposed tariffs that could cost 400,000 U.S. jobs. Mexican Economy Minister Marcelo Ebrard highlighted the potential impact on the automotive industry, calling for regional cooperation instead of a tariff war, amidst concerns over USMCA violations.

In response to U.S. President-elect Donald Trump's proposed 25% tariff, Mexican President Claudia Sheinbaum announced potential retaliatory measures. She warned that Trump's plan, aimed at protecting U.S. industry, could result in significant American job losses. 'If U.S. tariffs rise, Mexico will respond in kind,' Sheinbaum stated.

Economy Minister Marcelo Ebrard encouraged regional cooperation over a 'war of tariffs,' emphasizing that such trade barriers could violate the USMCA agreement and harm economic growth on both sides of the border. He noted the significant potential for job losses and impact on companies like Ford and General Motors.

The proposed tariffs, particularly affecting the automotive sector, could drive up vehicle costs. Analysts warned of their possible profit-erasing impact on major automakers. As USMCA members anticipate its 2026 review, the looming trade tension underscores the importance of renegotiating the pact in a mutually beneficial way.

(With inputs from agencies.)