Mexico does not like what Trump’s next steps will be.
President-elect Donald Trump has made a bold promise to impose a 25% tariff on all goods imported from Mexico and Canada on the first day of his second term. Trump’s stance is clear: “It’s time for them to pay a very big price!” He has repeatedly argued that these tariffs will pressure both countries to make better trade deals with the United States, putting American interests first.
However, Mexico is already preparing to retaliate. In response to Trump’s proposed tariffs, Mexican President Claudia Sheinbaum warned that Mexico would impose similar duties on U.S. exports if the U.S. goes through with its plan. Sheinbaum expressed concerns that such actions would not only disrupt trade but also harm the economies of both nations. “One tariff would lead to another in retaliation, escalating until we put at risk the very businesses that drive our economies,” Sheinbaum said.
The potential for a trade war escalated when Mexico’s Economy Secretary Marcelo Ebrard echoed these concerns in mid-November, suggesting that a 25% tariff would trigger an immediate Mexican response. “If you apply a 25% tariff to us, we will have no choice but to retaliate, as we are one of your largest trading partners,” Ebrard noted.
The stakes are high. A trade war between the U.S. and Mexico could lead to higher prices for consumers, disrupt supply chains, and hurt job growth on both sides of the border. In addition to economic fallout, the tariffs are also tied to Trump’s long-standing agenda to curb illegal immigration and drug trafficking, specifically the deadly flow of fentanyl across the southern border. Trump has argued that tough trade measures will incentivize Mexico to take stronger action on these issues.
As tensions rise, both countries must carefully navigate these threats. A successful second term for Trump could hinge on securing better trade terms, but how far he’s willing to push Mexico remains to be seen. If both sides dig in their heels, it could lead to significant economic and diplomatic consequences.