Mexico Threatens retaliation if Trump tariffs kill US jobs

"If there are U.S. tariffs, Mexico would also raise tariffs," Sheinbaum stated during a press conference.

Mexican President Claudia Sheinbaum has warned the U.S. of potential retaliation if President-elect Donald Trump implements a proposed 25% tariff on imports, a move analysts say could eliminate 400,000 U.S. jobs and increase consumer prices.

Mexican Economy Minister Marcelo Ebrard, who joined Sheinbaum, called for regional cooperation instead of retaliatory trade measures. He criticized the tariffs as harmful to the U.S. economy, potentially violating the USMCA trade deal. "It's a shot in the foot," Ebrard said, warning of substantial job losses, reduced growth, and higher costs for U.S. companies operating in Mexico.

Ebrard highlighted the automotive sector as particularly vulnerable, noting the impact on major exporters like Ford, General Motors, and Stellantis. He pointed out that 88% of pickup trucks sold in the U.S., many produced in Mexico, would face price hikes. "Our estimate is that the average price of these vehicles will increase by $3,000," Ebrard added, emphasizing the repercussions for rural areas, which strongly supported Trump.

Sheinbaum and Trump later discussed migration and trade in a phone call. Trump said on Truth Social that Sheinbaum agreed to help curb migration into the U.S., describing the conversation as "very productive." However, Sheinbaum clarified on X that she outlined Mexico's strategy to manage migration before it reached the U.S. border.

Analysts at Barclays warned that the proposed tariffs could wipe out profits for the Detroit Three automakers. Meanwhile, Brian Hughes, a spokesperson for Trump’s transition team, defended the tariffs as necessary to protect U.S. manufacturers and workers from unfair foreign practices.