Maps
Magazine

WORLD NEWS

Mexico Threatens Retaliation Against U.S. Tariffs, Warns of Economic Fallout
Mexico warns of retaliation if U.S. President-elect Trump enacts a 25% tariff, citing potential U.S. job losses and higher consumer prices. Both sides call for regional cooperation over trade tensions.
ND
by News Desk
2024-11-28
Mexico Threatens Retaliation Against U.S. Tariffs, Warns of Economic Fallout

Mexican President Claudia Sheinbaum on Wednesday issued a strong warning to U.S. President-elect Donald Trump, signaling that Mexico would retaliate with higher tariffs if Trump proceeds with his proposed 25% across-the-board tariff on imports. The move, which Trump has considered as part of his trade policy, could have significant repercussions not just for Mexico but for the U.S. economy as well.

Sheinbaum's remarks were made during a press conference where she outlined Mexico's readiness to take action if the tariff is implemented, emphasizing that such a measure would harm both countries economically. "If there are U.S. tariffs, Mexico would also raise tariffs," Sheinbaum said, signaling the country's preparedness for a trade conflict.

In a separate statement, Mexican Economy Minister Marcelo Ebrard stressed the negative impact of the tariffs, calling them a "shot in the foot" for both countries. He pointed out that the move could violate the US-Mexico-Canada Agreement (USMCA), the trade deal that governs the relationship between the three nations.

Ebrard further explained that Trump's proposed tariffs could lead to the loss of 400,000 U.S. jobs, disrupt U.S. businesses that rely on Mexico for manufacturing, and raise prices for U.S. consumers. He warned that the increased costs would negatively affect U.S. companies producing goods in Mexico, effectively doubling the taxes they currently pay.

The Mexican government is advocating for more regional cooperation and integration rather than escalating tensions through retaliatory tariffs, underscoring the potential harm to both economies. While trade tensions between the two nations have been a source of concern, this latest development marks a significant escalation in the ongoing trade debate.
Tagged:

TradeWars

MexicoUS

USMCA
Share News: