Mexican President Claudia Sheinbaum issued a stern warning about the economic consequences of proposed U.S. tariffs, signaling a potential trade conflict between the neighboring nations that could impact hundreds of thousands of jobs on both sides of the border.
In response to President-elect Donald Trump’s proposed 25% tariff on Mexican imports, Sheinbaum announced that Mexico would implement retaliatory measures if such policies are enacted. The United States currently conducts more trade with Mexico than any other nation, with Mexican imports totaling $475 billion last year and U.S. exports reaching nearly $323 billion.
Mexican Economy Minister Marcelo Ebrard projected that Trump’s proposed tariffs could result in the loss of approximately 400,000 U.S. jobs and significantly impact American consumers. The automotive sector would be particularly affected, with estimates suggesting an increase of $3,000 in the average price of pickup trucks sold in the United States.
During a news conference, Sheinbaum addressed broader bilateral issues, including security concerns. She highlighted that 70% of weapons seized from criminals in Mexico originate from the United States. “We do not produce these weapons, nor do we consume synthetic drugs. Our country bears the cost of violence resulting from meeting the drug demand in yours,” Sheinbaum stated.
The proposed tariffs could violate the United States-Mexico-Canada Agreement (USMCA), which is scheduled for review in 2026. The trade pact currently allows for duty-free commerce between the three North American nations, with limited exceptions.
Recent discussions between Trump and Sheinbaum have yielded conflicting narratives. While Trump claimed Sheinbaum agreed to halt migration through Mexico, the Mexican president clarified that her nation’s position is not to close borders but to “build bridges between governments and peoples”.
The Mexican peso has already shown vulnerability to the tariff threats, though Sheinbaum expressed optimism that the United States will maintain its economic relationship with Mexico.
The Mexican government emphasizes the need for regional cooperation rather than punitive trade measures. “What we need is more regional integration, not a war of retaliatory import taxes,” Ebrard stated.
Current data shows the deep integration of the two economies, with major U.S. automakers including General Motors, Stellantis, and Ford Motor Company maintaining significant operations in Mexico spanning eight decades.
In a message on his Truth Social site, Trump claimed that Sheinbaum consented to halting migration through Mexico into the United States, thus essentially sealing the Southern Border. He characterized their discussion as quite fruitful. Sheinbaum later replied on X, explaining that during her call with Trump, she detailed Mexico’s approach to migration, which addressed the needs of migrants before they reached the U.S.-Mexico border.