Mexico vows retaliation as Trump trade war erupts
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Mexican President Claudia Sheinbaum said Mexico had collaborated with the US on migration, security and anti-drug trafficking.
PHOTO: REUTERS
MEXICO CITY - Mexican President Claudia Sheinbaum on March 4 condemned US President Donald Trump’s 25 per cent tariffs on imports from Mexico and said her government would respond with its own measures, without immediately providing details.
Mr Trump’s across-the-board tariffs, which took effect overnight, mark a turning point in over 30 years of economic integration between Mexico and the US and could have deep repercussions on Latin America’s second-largest economy.
Mexico and the United States are each other’s top trading partners, with key industries such as the automotive sector benefiting from the cross-border movement of goods facilitated by their trilateral trade deal which also includes Canada.
“There is no reason, rationale or justification to support this decision that will affect our people and nations... Nobody wins with this decision,” Ms Sheinbaum said at her regular morning press conference.
She said she would give details on Mexico’s response, including retaliatory tariffs, at an event in the capital’s iconic Zocalo square on March 9.
Ms Sheinbaum added she would speak with Mr Trump this week, “probably on Thursday”.
The Mexican peso weakened on March 3 morning, trading down around one per cent against the dollar, while the country’s main stock market fell over 1 per cent.
US consumers and businesses will suffer from price hikes on products imported from Mexico, Ms Sheinbaum said, with the automotive industry having “the most problems.”
Analysts estimate the tariffs could add billions of dollars in added costs for carmakers that build their vehicles in whole or in part in Mexico.
The Mexican government has previously shared data showing that the majority of pickup trucks sold in the US, which are popular among Mr Trump supporters, are made in Mexico.
After delaying his decision for a month, Mr Trump on March 3 declared the tariffs would go into effect because Mexico, along with Canada and China, had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US.
Ms Sheinbaum said Mexico had taken “decisive actions” during the 30-day pause to bring down the amount of fentanyl moved into the United States.
In recent weeks, Mexico has deployed thousands of soldiers to hot spots along its border with the US and extradited nearly 30 jailed convicts and others accused of ties to violent drug cartels. REUTERS
