Wed Nov 27 22:27:31 UTC 2024: ## Mexico Vows Retaliation Against Trump’s Proposed Tariffs
**Mexico City/Washington D.C.** – Mexico has issued a strong warning to President-elect Donald Trump, stating it will retaliate with its own tariffs if Trump follows through on his plan to impose a 25% tariff on Mexican goods. Mexican President Claudia Sheinbaum and Economy Minister Marcelo Ebrard emphasized the deeply interconnected nature of the US-Mexico economy, highlighting the severe consequences of such a trade war.
Ebrard warned that Trump’s proposed tariffs could cost the US economy an estimated 400,000 jobs, primarily impacting the automotive sector. He cited a study showing that the tariffs would add approximately $3,000 to the price of a new pickup truck, a significant portion of which are manufactured in Mexico. This, he argued, would hurt US consumers and prove economically devastating.
Sheinbaum, who recently spoke with Trump about border migration, reiterated Mexico’s commitment to a reciprocal response. “If there are US tariffs, Mexico would also raise tariffs,” she declared. Both officials stressed that Trump’s proposed tariffs violate the USMCA trade agreement.
The proposed tariffs, targeting Mexico, Canada, and China, are intended to address irregular migration and drug smuggling. However, analysts at Barclays warn that the tariffs could eliminate all profits for major US automakers like GM, Stellantis, and Ford. Canadian Prime Minister Justin Trudeau also acknowledged speaking with Trump about the threat, emphasizing the importance of their bilateral relationship.
Despite the warnings from Mexican officials and economic analysts, Trump’s transition team remains defiant, claiming the tariffs are necessary to protect US manufacturers and workers from “unfair practices.” Sheinbaum has requested a meeting with Trump before his inauguration to further discuss these concerns. The situation remains tense as the incoming administration prepares to take office.
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