Mexico’s President and Economy Minister have provided their clearest response yet to U.S. President-elect Donald Trump’s proposed tariffs on Mexico, warning of significant consequences for both countries. Mexican officials estimate that the tariffs could lead to the loss of 400,000 U.S. jobs.
Speaking at a news conference on Wednesday, Mexican President Claudia Sheinbaum vowed that Mexico would respond decisively if Trump’s tariff plans are implemented.
“If there are U.S. tariffs, Mexico would also raise tariffs,” Sheinbaum stated.
Her remarks came after Trump announced plans to impose a 25% tariff not only on China but also on Canada and Mexico, citing concerns over trade imbalances and migration.
Impact on U.S. Workers and Consumers
Economy Minister Marcelo Ebrard cautioned that a regional trade war could have dire consequences, particularly for American workers.
“Around 400,000 U.S. jobs will be lost,” Ebrard said, referencing a study based on data from U.S. automakers operating in Mexico.
He also highlighted the potential impact on consumers. For instance, most pickup trucks sold in the U.S. are manufactured in Mexico, and Trump’s tariffs would add an estimated $3,000 to the price of a new vehicle.
“That is why we say this would be a shot in the foot,” Ebrard warned.
Trump’s Justifications
Trump has argued that the tariffs are necessary to boost U.S. manufacturing and address issues like irregular migration and drug smuggling. However, economists and trade experts have expressed skepticism about the effectiveness of such measures, citing potential violations of the United States-Mexico-Canada Agreement (USMCA), which prohibits most tariffs between the three nations.
In his statement on Monday, Trump threatened to impose the tariffs if Mexico, Canada, and China fail to take stronger actions against these issues.
Diplomatic Efforts
President Sheinbaum described her efforts to de-escalate tensions, revealing that she recently held a phone call with Trump to discuss migration across the U.S.-Mexico border.
“I had an excellent conversation with President Donald Trump,” Sheinbaum posted on social media. “We discussed Mexico’s strategy on the migrant phenomenon, and I explained that caravans are no longer arriving at the northern border because they are being addressed within Mexico.”
Despite these diplomatic overtures, Sheinbaum has consistently labeled Trump’s tariff threats as “unacceptable,” underscoring Mexico’s readiness to defend its interests if the proposed tariffs move forward.
