Nov 26, 2024 - Politics & Policy

Mexico's president would impose retaliatory tariffs in response to Trump's plan

April Rubin

Claudia Sheinbaum speaks at a lectern with the Mexican flag off to the side. — Mexican President Claudia Sheinbaum speaks during the High Level Summit between Mexican and U.S. leaders and businessmen at the National Palace in Mexico City on Oct. 15. Photo: Yuri Cortez/AFP via Getty Images

Mexican President Claudia Sheinbaum said on Tuesday that she would impose tariffs in retaliation to those proposed by President-elect Trump in a newly outlined plan for the start of his administration.

Why it matters: Leaders from Mexico, China and Canada have all argued that the U.S. and their countries mutually benefit from cooperative trade agreements.

Catch up quick: Trump on Monday said he would impose new tariffs to stop the flow of drugs and migrants.

A tariff of 25% of all goods coming from Canada and Mexico would take effect on Jan. 20. Imports from China would face a 10% tariff above any additional tariffs.

State of play: The Chinese and Canadian governments also responded to Trump's plan saying that trade cooperation is mutually beneficial.

"No one will win in a trade war or a tariff war," Chinese Embassy Spokesperson Liu Pengyu said in a statement, per Reuters.
The U.S., Mexico and Canada have a free trade agreement as of July 1, 2020 that substituted the North America Free Trade Agreement (NAFTA) and promises "reciprocal trade supporting high-paying jobs."

Zoom in: "Among Mexico's main exporters to the United States are General Motors, Stellantis, and Ford Motor Company, which arrived in Mexico 80 years ago," Sheinbaum said in a Tuesday letter to Trump.

"Why impose a tariff that would jeopardize them? Such a measure would be unacceptable and would lead to inflation and job losses in both the United States and Mexico."

Zoom out: Sheinbaum also addressed Trump's plan to deport millions of undocumented immigrants at the start of his term.

She said a surge in weapons in Mexico and the flow of drugs to the U.S. is a U.S. public health problem.
"If even a small percentage of what the United States allocates to war were instead dedicated to building peace and fostering development, it would address the underlying causes of human mobility," she said.

Go deeper: Trump promises tariffs on Canada and Mexico, plus higher China levies

Add Axios on Google

Mexico's president would impose retaliatory tariffs in response to Trump's plan

What to read next