Wednesday, July 16, 2025

Trump’s Tariff Threat Sparks Trade War Warnings from Mexico’s President

Mexican President Claudia Sheinbaum held a daily press briefing at the Presidential Palace in Mexico City on November 5. Her remarks came in response to President-elect Donald Trump\'s declaration that he would impose a 25% tariff on imports from Mexico and Canada on his first day in office. Sheinbaum vowed that Mexico would retaliate if such measures were implemented. / AFP
Mexican President Claudia Sheinbaum held a daily press briefing at the Presidential Palace in Mexico City on November 5. Her remarks came in response to President-elect Donald Trump’s declaration that he would impose a 25% tariff on imports from Mexico and Canada on his first day in office. Sheinbaum vowed that Mexico would retaliate if such measures were implemented. / AFP

President-elect Donald Trump’s aggressive tariff policy will increasingly ignite a trade war.

According to the Financial Times (FT), Mexican President Claudia Sheinbaum hinted at potential retaliation on November 26 if Trump imposes tariffs on Mexican products.

This follows Trump’s social media announcement the previous night, in which he declared his intention to levy a 25% tariff on all imports from Mexico and Canada starting January 20, his first day in office.

Trump criticized both nations for failing to control illegal immigration and drug trafficking, making assertions that contradict the United States-Mexico-Canada Agreement (USMCA) he established during his first term.

Mexico did not remain silent.

During her daily press briefing, Sheinbaum read a letter addressed to Trump aloud.

Sheinbaum stated, “Neither immigration issues nor U.S. drug consumption can be resolved through threats or tariffs.”

She emphasized that “tariffs lead to retaliation,” warning of a vicious cycle of retaliation and counter-retaliations. Sheinbaum cautioned that this trade war would ultimately jeopardize businesses operating in both countries.

She also highlighted that U.S. automotive companies are particularly vulnerable, given their significant exports from Mexico to the U.S.

Sheinbaum argued that imposing tariffs on these businesses would be “unacceptable and trigger inflation and unemployment in both the U.S. and Mexico.”

She also refuted Trump’s claims that Mexico is not working to prevent illegal immigrants from entering the U.S.

She suggested that Trump “might not be aware” of Mexico’s efforts to address illegal immigration, noting that U.S. Border Patrol apprehensions of illegal immigrants have dropped by 75% since last December. She also pointed out that tons of illicit drugs have been seized.

Earlier, Trump claimed in a social media post that “thousands are pouring in from Mexico and Canada,” alleging that they are bringing unprecedented levels of crime and drugs into the U.S.

Meanwhile, Trump’s shocking announcement on his first day in office about imposing a 25% tariff on Mexican and Canadian products caused both the Mexican peso and the Canadian dollar to fall.

The peso plummeted 2.3% against the dollar, while the Canadian dollar fell to its lowest level in four years.

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