Tariff Tensions: The Looming Trade War and Its Economic Impact

Mexican Economy Minister Marcelo Ebrard warned that a proposed 25% tariff by U.S. President-elect Donald Trump could lead to 400,000 job losses and stifled growth in the U.S., heavily impacting Mexico's automotive exports. President Claudia Sheinbaum urged dialogue as tension mounts over potential trade conflict.

In a recent press conference, Mexican Economy Minister Marcelo Ebrard sounded alarms over U.S. President-elect Donald Trump's proposed 25% tariff. Ebrard projected significant economic repercussions, including the loss of 400,000 U.S. jobs and reduced economic growth, as well as damaging effects on Mexican exports.

Ebrard criticized Trump's approach as detrimental, emphasizing the need for regional cooperation instead of retaliatory trade measures. The automotive sector, a critical component of Mexico's manufacturing economy and a major U.S. exporter, would be particularly impacted, with potential price hikes for consumers.

Mexican President Claudia Sheinbaum has called for prompt dialogue, voicing concerns over repeating past trade conflicts. Analysts warn of increased tension, and Mexico's automotive industry group AMIA is on high alert, preparing for any new developments ahead of the 2026 North American trade pact revision.

(With inputs from agencies.)