Mexican President Claudia Sheinbaum said she will announce tariffs and other measures on Sunday in response to US President Donald Trump’s decision to impose tariffs on goods from her country.
Trump’s comprehensive tariffs mark a turning point in more than 30 years of economic integration between Mexico and the United States and could have profound implications for Latin America’s second-largest economy.
Mexico and the United States are each other’s main trading partners, and key industries such as the auto sector benefit from the cross-border movement of goods, facilitated by their trilateral trade agreement, which also includes Canada.
Sheinbaum said she will use Mexico City’s main plaza, Socalo, to rally supporters at noon to detail her plan.
“Our goal is not to start an economic confrontation. Which unfortunately is the opposite of what we should be doing. You can’t help but think about the damage this will do to US citizens and companies. No one will benefit from this decision,” the Mexican leader said.
Sheinbaum added that she will talk to Trump this week, “probably on Thursday.”
The Mexican peso weakened Tuesday morning, down about 1 per cent against the dollar, while the country’s main stock market fell more than 1 per cent.
Sheinbaum said US consumers and businesses would be hit by higher prices on products imported from Mexico, with the auto industry facing the “biggest challenges.”
Implications of the tariff war
Analysts estimate that the tariffs could result in billions of dollars in additional costs for automakers that manufacture all or part of their vehicles in Mexico.
Earlier, the Mexican government shared data showing that most pickup trucks sold in the US, which are popular with Trump supporters, are made in Mexico. After delaying his decision for a month, Trump announced on Monday that the tariffs would go into effect because Mexico, along with Canada and China, have failed to do enough to stem the flow of the deadly opioid fentanyl and its chemical precursors into the United States.
Sheinbaum, for her part, said Mexico took “decisive action” during the 30-day pause to reduce the amount of fentanyl entering the United States.
In recent weeks, Mexico has sent thousands of soldiers to hotspots along its border with the United States and extradited nearly 30 prisoners and others accused of links to violent drug cartels.
On Tuesday, Trump imposed sweeping import tariffs of 25 per cent on Canada and Mexico. Ottawa has already imposed retaliatory tariffs on $107 billion worth of US goods.
