Mexico Threatens Retaliation After Trump’s Tariff Hike Plan

Mexican President Claudia Sheinbaum has stated that the country could retaliate with its tariffs policy after United States President-elect Donald Trump threatened to impose 25 per cent import duties on goods from Mexico if the country fails to stop the flows of drugs and migrants across the border.

LEADERSHIP reports that Trump had on Monday said he would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China as one of his first executive orders.

Responding to the comment, Sheinbaum on Tuesday said she was willing to engage in talks on the issues but stating that drugs were a United States problem.

“One tariff would be followed by another in response, and so on until we put at risk common businesses,” Sheinbaum said, referring to U.S. automakers that have plants on both sides of the border.

She said that Mexico had done a lot to stem the flow of migrants, noting that “caravans of migrants no longer reach the border.”

However, Mexico’s efforts to fight drugs like the deadly synthetic opioid fentanyl which is manufactured by Mexican cartels using chemicals imported from China have weakened in the last year.

Sheinbaum stated that Mexico suffered from an influx of weapons smuggled in from the United States, and said the flow of drugs “is a problem of public health and consumption in your country’s society.”

She criticised the U.S. spending on weapons, saying the money should instead be spent regionally to address the problem of migration.

“If a percentage of what the United States spends on war were dedicated to peace and development, that would address the underlying causes of migration,” she said.

Her response suggests that Trump faces a much different Mexican president than he did in his first term with former President Andrés Manuel López Obrador.

The two were eventually able to strike a bargain in which Mexico helped keep migrants away from the border and received other countries’ deported migrants.

“We negotiate as equals, there is no subordination here, because we are a great nation,” Sheinbaum said, while adding, “I think we are going to reach an agreement.”

“It is unacceptable and would cause inflation and job losses in Mexico and the United States,” Sheinbaum said while offering to talk about the issues. “If tariffs go up, who will it hurt? General Motors,” she said