Mexico Warns of Retaliation Over Trump’s Proposed Tariff Increase

Mexican President Claudia Sheinbaum has warned that Mexico could retaliate with its own tariffs after U.S. President-elect Donald Trump announced plans to impose a 25% import duty on goods from Mexico if the country does not take stronger action to curb drug trafficking and migration.

According to LEADERSHIP, Trump revealed on Monday that he intended to impose a 25% tariff on all products from Canada and Mexico, alongside an additional 10% tax on goods from China, as part of his initial executive orders.

In response, Sheinbaum said on Tuesday that while she was open to discussions, she emphasized that the issue of drugs was a problem primarily for the United States. “One tariff will lead to another, and so on, until we put at risk shared businesses,” Sheinbaum said, referencing U.S. car manufacturers with factories on both sides of the border.

Sheinbaum highlighted that Mexico had already made significant efforts to manage migration, noting that migrant caravans no longer reach the U.S. border. However, she acknowledged that Mexico’s efforts to combat drugs, including fentanyl produced by Mexican cartels using chemicals from China, had diminished over the past year.

She also pointed out that the influx of weapons smuggled from the U.S. contributed to Mexico’s problems. “The flow of drugs is a public health issue and a matter of consumption within your society,” Sheinbaum said, turning the focus back to the U.S.

The Mexican president also criticized the U.S. military spending, suggesting that more of those resources should be directed to regional efforts to address migration. “If a portion of the U.S. defense budget were dedicated to peace and development, it would tackle the root causes of migration,” she added.

Her remarks indicate a departure from the approach of former President Andrés Manuel López Obrador, with whom Trump eventually struck a deal to help curb migrant flow at the border. Sheinbaum’s statement reflects a stronger stance, asserting that negotiations should be equal rather than one-sided. “We negotiate as equals, because we are a great nation,” Sheinbaum said, adding, “I believe we will reach an agreement.”

Sheinbaum also warned of the economic consequences of increased tariffs, stating, “It would be unacceptable and would cause inflation and job losses in both Mexico and the United States.” She further emphasized that U.S. companies like General Motors would be negatively impacted by higher tariffs. While offering to engage in talks, she made it clear that Mexico would not accept measures that could harm both economies.