Additional Coverage:
- Mexico vows to retaliate with its own trade barriers, putting US joint ventures at risk (newsbreak.com)
Mexico Prepares Tariffs against US Threats
Mexico’s President Claudia Sheinbaum Pardo has announced that her country will retaliate with tariffs if President-elect Donald Trump enacts his planned 25% tariffs on Mexican imports. Sheinbaum warned that such tariffs would harm joint ventures between the two countries.
Trump has threatened to impose tariffs on Mexican and Canadian goods to combat the influx of drugs and illegal immigrants. However, Sheinbaum believes that tariffs would only exacerbate inflation and job losses in both countries.
Mexico is the world’s largest exporter to the US, with the majority of its exports being vehicles. About 83% of Mexican exports go to the US, making Mexico heavily reliant on its northern neighbor.
In the past, Trump has used tariffs as a negotiating tactic. However, experts warn that targeting both Mexico and China could significantly increase inflation.
President Sheinbaum has emphasized the importance of dialogue and hopes to meet with Trump’s team to resolve the issue amicably.