Mexican President Claudia Sheinbaum warned of retaliatory tariffs if U.S. President-elect Trump imposes a 25% tariff, risking U.S. jobs and price hikes. Economy Minister Ebrard urged regional unity, cautioning the move could harm industries and violate the USMCA deal.
Mexican President Claudia Sheinbaum warned on Wednesday that Mexico would impose retaliatory tariffs if U.S. President-elect Donald Trump proceeded with his proposed 25% tariff, which could jeopardise 400,000 U.S. jobs and raise consumer prices.
"Mexico will also raise tariffs if the U.S. implements theirs," Sheinbaum stated, signalling the country's readiness to counter its key trade partner.
Economy Minister Marcelo Ebrard criticised the proposal as counterproductive, arguing it violates the USMCA trade agreement and would harm U.S. growth, jobs, and companies operating in Mexico, particularly the automotive sector.
Ebrard highlighted that 88% of pickup trucks sold in the U.S., primarily manufactured in Mexico, would face price increases, potentially impacting rural Trump supporters. He estimated vehicle prices could rise by $3,000 on average.
While Trump claimed Sheinbaum agreed to curb migration during a call, she clarified Mexico's strategy emphasises cooperation rather than border closures.
Trump's tariff threats, seen as a negotiating tactic, have drawn widespread concern. Analysts warn they could devastate Mexico's automotive industry, which accounts for 25% of North American vehicle production, and eliminate profits for major U.S. automakers like Ford, GM, and Stellantis.
Trade experts predict the USMCA, up for review in 2026, may face renegotiation. Ebrard called for regional unity, stating, "Mexico seeks stronger ties, not divisions." Meanwhile, the peso strengthened slightly, recovering from recent losses.
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