Mexico's President Claudia Sheinbaum has warned about the potential economic consequences of the proposed 25% tariffs on imports by U.S. President-elect Donald Trump.
She emphasized that these tariffs could result in the loss of 400,000 jobs in the United States and higher prices for American consumers.
Sheinbaum stated that Mexico would retaliate with its own tariffs if the U.S. proceeded with this plan. Economy Minister Marcelo Ebrard also expressed concerns about the proposed tariffs, stating that they would violate the USMCA trade agreement and lead to job losses and reduced economic growth in the U.S.
The automotive sector, which heavily relies on Mexico's manufacturing industry, would be particularly vulnerable to these tariffs.
Analysts have suggested that Trump's tariff threats may be a negotiating tactic rather than a concrete trade policy.
The potential disruption to the automotive industry highlights the interconnectedness of the U.S. and Mexican economies.
Despite the threat of tariffs, Mexico's peso showed signs of resilience, strengthening against the dollar in after-hours trading. However, escalating protectionism could pose significant challenges for Mexico-U.S. relations.
As the USMCA trade agreement approaches its review in 2026, experts predict that the three member countries may seek a comprehensive renegotiation. Ebrard emphasized the importance of maintaining strong trade ties and collaboration rather than conflict.
Both nations will need to navigate these economic challenges while protecting their respective interests.