Mexico's Trade Retaliation Stance Against U.S. Tariff Threat

Mexican President Claudia Sheinbaum warns of potential tariffs if the U.S. implements Trump's 25% tariff proposal. Economy Minister Marcelo Ebrard calls for regional cooperation, highlighting potential job losses and economic impact. Automotive sector may suffer, with industry's key players and analysts highlighting risks.

Mexican President Claudia Sheinbaum issued a stern warning on Wednesday, stating that Mexico is prepared to retaliate if U.S. President-elect Donald Trump enacts a proposed 25% tariff. The Mexican government cautions such a move could lead to the loss of 400,000 U.S. jobs.

Sheinbaum conveyed Mexico's position during her morning press conference, emphasizing that if U.S. tariffs are imposed, Mexico will raise tariffs in response. This announcement leaves no ambiguity about Mexico's readiness to counteract measures from its largest trading partner.

Economy Minister Marcelo Ebrard, highlighting the importance of regional cooperation over a trade war, described Trump's proposal as a 'shot in the foot.' He pointed out that the tariffs could significantly damage the automotive sector, impacting major automakers like Ford, General Motors, and Stellantis.

(With inputs from agencies.)