Mexico and Trump discuss trade, migration, and tariffs amid regional talks

Mexican President Claudia Sheinbaum and U.S. President-elect Donald Trump held a cordial phone call to discuss trade, migration, and regional cooperation. While tensions remain over proposed tariffs, both leaders expressed commitment to maintaining positive relations.

Mexican President Claudia Sheinbaum stated on Thursday that she and U.S. President-elect Donald Trump had agreed to maintain positive relations during a cordial phone call, which seemed to ease tensions between the two major trading partners amidst threats of tariffs.

Sheinbaum adopted a more conciliatory tone following her earlier statement that Mexico would respond if Trump followed through on his pledge to impose a 25% tariff on imports from Mexico and Canada. "It was a good conversation, and we are going to keep having conversations," Sheinbaum said during a morning press conference, noting that while tariffs were not directly discussed, they had talked about the reasons Trump cited for considering them: illegal migration and fentanyl trafficking.

"It was a very friendly conversation," Sheinbaum added. "We agreed there would be a good relationship." The Mexican peso strengthened by nearly 1% early on Thursday after days of weakening.

Trump’s proposed tariffs would seemingly violate the U.S.-Mexico-Canada free trade agreement, which he had signed during his first term and is set for review in 2026.

Following Wednesday’s call, Trump announced on Truth Social that Sheinbaum had "agreed to stop migration through Mexico, and into the United States, effectively closing our Southern Border." However, Sheinbaum appeared to dispute this on X, clarifying that they had discussed Mexico’s strategies to reduce migration to the U.S. but emphasised that Mexico's approach was "not to close borders, but to build bridges between governments and their peoples."

Addressing the apparent contradiction, Sheinbaum attributed it to differences in communication styles. "I can assure you we would never close the Mexico-U.S. border."

Mexico has, in recent months, increased enforcement efforts, which have helped reduce the number of migrants arriving at the U.S. border. Sheinbaum also noted that Mexican authorities were managing a caravan of approximately 800 people near Pijijiapan in southern Chiapas state. "This caravan is not going to reach the north," she stated.

Some analysts suggest that the tariffs proposal, which they believe would drive up U.S. consumer prices, is likely a negotiation tactic ahead of the USMCA review.

In the first nine months of this year, Mexico accounted for 15.9% of U.S. trade, followed by Canada at 14.4% and China at 10.8%. Trump has also proposed a 25% tariff on Canada and "an additional 10% tariff, above any additional tariffs" on China.

While Canadian Prime Minister Justin Trudeau has called for unity and improvements in trade relations, some Canadian officials reacted strongly to Trump’s proposals.

"To compare us to Mexico is the most insulting thing I've ever heard from our friends and closest allies," Ontario Premier Doug Ford told media this week. "It's like a family member stabbed you right in the heart."

Mexican leaders, meanwhile, have urged greater regional cooperation, dialogue, and integration.

Earlier on Thursday, Mexican Economy Minister Marcelo Ebrard expressed his belief that the U.S. was unlikely to impose the proposed tariffs, citing the significant costs it would entail on both sides of the border.

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