Trade Tensions Rise: Mexico Threatens Retaliatory Tariffs Against U.S.

Mexican President Claudia Sheinbaum has announced potential retaliatory tariffs against Trump's proposed 25% tariff on Mexican imports. The tariffs could significantly impact 400,000 U.S. jobs and retail prices. Mexico's Economy Minister Ebrard advocates for regional cooperation, highlighting the potential negative economic effects on both countries, particularly the automotive sector.

Amid escalating trade tensions, Mexican President Claudia Sheinbaum has declared that Mexico would respond in kind if U.S. President-elect Donald Trump imposes a 25% tariff on Mexican imports. During a Wednesday press conference, Sheinbaum warned that such actions could jeopardize 400,000 U.S. jobs and increase prices for American consumers. She stressed a commitment to protecting Mexico's economic interests through possible retaliatory trade measures.

Economy Minister Marcelo Ebrard, accompanying Sheinbaum, criticized Trump's proposed tariffs, claiming they could lead to U.S. job losses and violate the USMCA trade deal. Ebrard emphasized the importance of regional cooperation over tariff wars, pointing out the tariffs would especially burden cross-border automotive companies like Ford, General Motors, and Stellantis.

Sheinbaum also spoke with Trump, discussing security collaboration. While Trump's tariff threats might be more tactic than policy, Mexico's automotive industry, a crucial part of its economy, braces for potential disruption. Mexico aims to avoid conflicts and division, focusing instead on strengthening regional integration.

(With inputs from agencies.)