Trade Tensions Rise: Mexico's Retaliatory Stand Against Potential U.S. Tariffs

Mexican President Claudia Sheinbaum has announced potential retaliatory tariffs against U.S. if Trump's proposed 25% tariff is implemented. Economy Minister Marcelo Ebrard warns such tariffs would harm U.S. job market and economy. Analysts believe Trump's tariff proposal is more negotiating tactic than policy.

Mexican President Claudia Sheinbaum declared that Mexico would respond with retaliatory tariffs if U.S. President-elect Donald Trump proceeds with his proposed 25% tariff, a measure she argued could eliminate 400,000 U.S. jobs and increase consumer prices.

Economy Minister Marcelo Ebrard urged regional cooperation instead of engaging in tariff wars, cautioning that these tariffs would violate the USMCA trade deal and harm U.S. economic interests. Ebrard highlighted the severe impact on the automotive industry and U.S. consumer prices, especially for vehicles produced in Mexico.

Analysts view Trump's tariff threats as negotiating tactics rather than actual trade policy. Potential tariffs could significantly disrupt North American trade and negatively affect both economies, prompting calls for renewed USMCA deliberations.

(With inputs from agencies.)