Mexican President Claudia Sheinbaum has warned that Mexico would retaliate if U.S. President-elect Donald Trump follows through with his proposed 25% across-the-board tariff on Mexican imports, a move she claimed could result in the loss of 400,000 U.S. jobs and higher prices for American consumers.
“If there are U.S. tariffs, Mexico would also raise tariffs,” Sheinbaum stated in a press conference, marking her strongest comments yet regarding potential retaliatory measures. Mexican Economy Minister Marcelo Ebrard, who joined Sheinbaum, emphasized the need for regional cooperation rather than a trade war, calling Trump’s tariff proposal a self-inflicted wound.
Ebrard further warned that such tariffs would severely harm the U.S. economy, leading to job losses, reduced growth, and increased costs for U.S. businesses operating in Mexico, effectively doubling the taxes they pay.
The automotive sector, in particular, would be hit hard, with major cross-border exporters like Ford, General Motors, and Stellantis facing steep tariffs. Ebrard pointed out that 88% of the pickup trucks sold in the U.S. are manufactured in Mexico, meaning prices for these popular vehicles, especially in rural areas that largely support Trump, would rise.
Sheinbaum and Trump spoke by phone later on Wednesday, with the two leaders discussing a range of issues. Trump had previously said that the tariffs would remain until the flow of drugs, particularly fentanyl, and migrants into the U.S. was halted. Trump also claimed that Sheinbaum had agreed to stop migration through Mexico into the U.S., effectively closing the southern border.
Sheinbaum, however, clarified on X (formerly Twitter) that she had outlined Mexico’s strategy for handling migration, which focuses on addressing migrant issues before they reach the U.S.-Mexico border. “Mexico’s stance is not to close borders, but to build bridges between governments and their peoples,” she wrote.
In the wake of the discussions, Mexico’s peso strengthened by nearly 1% against the dollar in after-hours trading, recovering some of the losses it had incurred earlier in the week.
