November 28, 2024: Mexico has issued a stern warning to U.S. President-elect Donald Trump over his proposed 25% tariff on all imports from Mexico, a move experts predict could destroy 400,000 U.S. jobs and drive up consumer prices. Mexican President Claudia Sheinbaum vowed swift retaliation if the tariffs are enacted, threatening countermeasures targeting key U.S. exports.
“If the U.S. imposes tariffs, Mexico will respond in kind,” Sheinbaum declared, highlighting the potential ripple effects on the U.S. economy. Mexican Economy Minister Marcelo Ebrard echoed her concerns, warning that these tariffs would hit U.S. automakers hard, raising vehicle prices by an average of $3,000 and crippling cross-border manufacturing.
The tariffs, aimed at controlling drug trafficking and migration, have sparked debates on whether they align with the USMCA trade deal, which is scheduled for review in 2026. Analysts argue that Trump’s approach might be less about trade and more about leveraging tariffs as a negotiating tool.
Ebrard criticized the move as “a shot in the foot,” emphasizing the interconnectedness of regional economies. Nearly 88% of pickup trucks sold in the U.S., made in Mexico, could see significant price hikes, impacting rural areas—many of which supported Trump in the election.
While Trump called his conversation with Sheinbaum “productive,” the Mexican president remained firm on her strategy of building cooperation rather than closing borders. On X (formerly Twitter), Sheinbaum reiterated Mexico’s commitment to regional collaboration rather than division through tariffs.
Mexico’s automotive sector, responsible for 25% of North American vehicle production, stands to suffer gravely, with analysts predicting the proposed tariffs could erase profits for Detroit automakers like GM, Ford, and Stellantis. Meanwhile, Mexico’s peso showed resilience, strengthening against the dollar after initial losses.
Trade relations between the U.S. and Mexico, crucial for both nations’ economies, are now under intense scrutiny. Experts warn that escalating protectionism could trigger higher inflation, unemployment, and reduced growth in both countries.
The stakes are high, with $1.78 trillion in USMCA trade recorded in the first nine months of 2024. As tensions rise, the world watches closely, questioning the long-term impact of these strategies on North America’s economic stability.
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