Mexico Vows to Retaliate US on Tariff Hikes, Trump Responds

Mexican President Claudia Sheinbaum and economy minister Marcelo Ebrard have vowed to retaliate if United States president-elect Donald Trump imposes his proposed 25 per cent tariff on goods from Mexico. Sheinbaum warned that if the president-elect followed through on his plans, Mexico's move would cost 400,000 US jobs and drive up prices for US consumers.

“If there are US tariffs, Mexico would also raise tariffs,” Sheinbaum said on Wednesday during a press conference.

On the same note, Ebrard called it a shot in the foot as Trump's proposed plans also violate the USMCA trade deal between Mexico, Canada and the US. He called for more regional cooperation and integration instead of a trade war.

Ebrard also warned that around 400,000 jobs would be lost in the US, pointing at a study conducted by US carmakers that manufacture in Mexico. He also highlighted that the impact on US companies producing in Mexico due to tariffs would be huge as it would double the tax they paid.

Ebrard also claimed that Trump's proposed tariff would add $3,000 to the cost of pick-up trucks in the US because most of them are manufactured in Mexico.

Donald Trump's Response to Mexico

On Wednesday, Trump and Sheinbaum held a conversation over the phone where they discussed matters of the issue.

Trump shared on his Truth Social platform that both of them had a very productive conversation.

"Sheinbaum agreed to stop migration through Mexico, and into the United States, effectively closing our Southern Border," he added.

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“I had an excellent conversation with President Donald Trump. We discussed Mexico’s strategy on the migrant phenomenon, and I shared that caravans are not arriving at the northern border because they are being taken care of in Mexico,” Sheinbaum posted on X.

"We reiterate that Mexico's position is not to close borders but to build bridges between governments and between peoples," she added.

Trump's Tariff Plans

As president-elect Donald Trump will take charge of the White House on January 20, 2025, he said that he will impose a 25 per cent tariff on China, Mexico and Canada on the very first day in an effort to bring manufacturing jobs back to the country.

In a post on Truth Social, Trump said that Trump said that massive amounts of drugs specifically Fentanyl are being sent to the US by China, mostly through Mexico.

"This Tariff will remain in effect until such time as Drugs, in particular, Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem," Trump added.

In response, China said that they are willing to engage in "constructive dialogue" with the US regarding the matter. They also emphasised the importance of cooperation to ensure global economic stability.

Canadian Prime Minister Justin Trudeau also held a conversation with Trump and asserted that their relationship takes a certain amount of working on, and they are willing to put in the work.