Trade Tensions Escalate: Mexico Strikes Back with Retaliatory Tariffs

Mexican President Claudia Sheinbaum has announced retaliatory tariffs in response to U.S. tariffs on Mexican goods, signaling a trade war's onset. This move follows accusations by the U.S. administration linking Mexico to drug cartels. Mexico emphasizes its commitment to dialogue and its efforts against drug trafficking.

Escalating trade tensions, President Claudia Sheinbaum of Mexico has declared retaliatory tariffs following the U.S. enactment of 25% tariffs on Mexican imports. In her announcement on social media platform X, Sheinbaum emphasized her administration's preference for dialogue but deemed this move necessary.

Sheinbaum directed her economy minister to execute a 'plan B' incorporating both tariff and non-tariff measures, while declining to specify targeted U.S. imports. Major sectors such as pork, cheese, fresh produce, and steel may face tariffs, though the auto industry will be temporarily exempt.

Rejecting White House claims of government ties with drug cartels, Sheinbaum highlighted her government's achievements in drug seizures and trafficking arrests since taking office. The U.S. justifies tariffs partly due to Mexico's purported failure to block fentanyl trafficking and curb migration.

(With inputs from agencies.)