Mexico vows retaliation for Trump's tariffs

(Patria) - Mexican President Claudia Sheinbaum has ordered retaliatory tariffs in response to the United States' decision to impose a 25 percent tariff on all goods coming from Mexico.

In a lengthy post on the social network X, Sheinbaum said her government sought dialogue, not confrontation, with its main trading partner to the north, but that Mexico was forced to respond in kind, Reuters reported.

"I have instructed my Economy Minister to implement Plan B, which we have been working on, which includes tariff and non-tariff measures to defend Mexico's interests," Sheinbaum announced, without specifying which US goods her government would target.

For decades, the two countries have seen growth in mutual trade, including a highly integrated automotive industry, as well as huge quantities of crude oil, natural gas, and motor fuels in both directions. Mexico sends large quantities of fresh produce north, including avocados and tomatoes, and US farmers send huge quantities of corn and other grains to Mexican buyers.

Overall, the United States is by far Mexico's most important foreign market, and in 2023, Mexico surpassed China as the main destination for US exports.

Mexico is preparing possible retaliatory tariffs on imports from the US, ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel, and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.

Economy Minister Marcelo Ebrard said on X that Trump's tariffs were a "flagrant violation" of the US-Mexico-Canada agreement.

"Plan B is underway," Ebrard said. "We will win!"

US exports to Mexico amounted to more than $322 billion in 2023, according to data, while the US imported Mexican products worth more than $475 billion.

Almost a third of Mexico's gross domestic product depends directly on exports to the United States, said Gabriela Siller, director of economic analysis at Grupo Financiero BASE, on X.

"With a universal tariff of 25%, it is estimated that exports could fall by about 12%. In addition, Mexican GDP could fall by 4% in 2025 if the tariff is maintained throughout the year," Siller said.

In her post, Sheinbaum also dismissed as "slander" White House claims that drug cartels have an alliance with the Mexican government, which the Trump administration used to justify the tariffs.

Trump said the tariffs against Mexico were due to the country's failure to prevent the entry of fentanyl, a deadly opioid, into the US, as well as what he called uncontrolled migration.

Sheinbaum said the government's record since taking office in October – seizing 20 million doses of fentanyl and detaining over 10,000 people linked to drug trafficking – refuted these claims.