MEXICO CITY — On Tuesday, Mexico’s president announced plans to retaliate against the recent 25% tariffs levied by the United States on Mexican goods by imposing their own tariffs on American goods. Mexico aims to provide details on the targeted products and additional measures during an upcoming event in Mexico City’s central plaza on Sunday. This delay indicates Mexico’s desire to reduce tensions in the brewing trade conflict instigated by U.S. President Donald Trump.
President Claudia Sheinbaum mentioned a planned phone call with Trump later in the week, likely on Thursday, which could potentially influence the outcome. According to Mexican officials, they’ve been preparing for such a scenario since January. Sheinbaum criticized the tariffs, stating that there is no reasonable justification for a decision that would negatively impact both Mexican and American citizens.
Meanwhile, Canada and China have already taken immediate actions in response. Mexico heavily relies on exports to the U.S., accounting for approximately 80% of its exports and significant contributions to the over $800 billion trade between the two countries last year.
Sheinbaum denounced the allegations from the White House tagging Mexican drug traffickers’ activities as “offensive, defamatory and without support,” tying them to a misguided perception of Mexico’s government operations. Trump’s motivations, as she pointed out, appear tied to efforts to combat drug trafficking and manage migrant flows into the U.S. However, advances made under Sheinbaum’s administration include seizing significant caches of illegal drugs and dismantling many operations, alongside extraditing high-ranking drug cartel members to the U.S.
She noted the potential damage inflicted on U.S. citizens and businesses would be significant, adding that such decisions yield no winners. Despite cooling diplomatic conditions, Sheinbaum remained diplomatic, emphasizing mutual respect and a cooperative approach between the two countries.
Trade analysts shared skepticism about the permanence of Trump’s tariffs, forecasting inflation hikes and adverse economic impacts for both nations. Experts suggested that imposing tariffs would adversely affect American consumers by inflating prices, especially given the burdens on agricultural trade shared between the two countries. The tariffs are viewed as unsustainable, with doubts arising on whether Trump’s corporate allies would permit sustained encroachment upon crucial foreign markets.
Economic analyst Gabriela Siller projected short-term economic disturbances with potential inflation and slow growth on both sides, despite the relative stability in currency exchange rates hinting speculation of the U.S. retracting the tariffs shortly.
Mexico faces potentially catastrophic economic repercussions should the trade conflict expand, though currently, Sheinbaum’s popularity in Mexico has insulated her governance. Efforts have been made to promote national unity, leveraging historical and nationalist themes to engender a robust negotiating stance with the U.S.
Sunday’s announcement in Mexico City aims to draw upon a surge of national pride stirred by these circumstances. However, anxiety persists amongst those with livelihoods tied to cross-border trade.
Truck driver Carlos Ponce, who regularly commutes with goods across the U.S.-Mexico border, fears the potential loss of employment or changed trade routes, driven by manufacturers seeking alternative partners. The border crossing at Ciudad Juarez was bustling as the looming tariffs heightened concerns.
Alan Russell, leader of the U.S.-based Tecma company that supports manufacturers establishing in places like Ciudad Juarez, expressed skepticism that the tariffs would incentivize American companies to relocate production stateside, stressing the need for stability and certainty before such moves occur.
Manuel Sotelo, with a truck fleet operating daily across the border, was taken aback by the imposition of tariffs given Mexico’s efforts to strengthen border security and cartel enforcement, including deploying thousands of troops. Despite the expectations of many like Sotelo, Trump’s decision remains unchanged, leaving impacted trade participants prepared for instability as leadership seeks resolution.
