Claudia Sheinbaum, President of Mexico Photo: Carlos Santiago / Zuma Press
Mexican President Claudia Sheinbaum has responded to the decision of the Donald Trump administration by imposing retaliatory duties on US goods. This decision was a response to the 25% tariff that Washington imposed on all Mexican products as part of a new trade war between the two neighbouring countries.
Reuters reports this with reference to an official statement by Sheinbaum on the X social network (Twitter).
“Our government has sought dialogue, not confrontation, with our main trading partner, but we have to respond. I have instructed the Minister of Economy to launch our ‘Plan B’, which includes tariff and non-tariff measures to protect Mexico’s interests,” the President stressed.
Sheinbaum did not specify which US goods would be subject to the new duties.
Trade confrontation: what is known about “Plan B”
According to sources, Mexico will impose duties ranging from 5% to 20% on:
- Pork
- Cheeses
- Fruits and vegetables
- Processed steel and aluminium
At the same time, the US automotive industry has not yet been subject to restrictions, indicating that the Mexican authorities are trying to avoid escalation.
Economy Minister Marcelo Ebrard said that Trump’s actions are a “blatant violation” of the US-Mexico-Canada Agreement (USMCA).
“Plan B has already been launched. We are going to win!” wrote Ebrard on social media.
Economic consequences: a blow to Mexico’s GDP
According to Grupo Financiero BASE, the United States is Mexico’s largest trading partner. In 2023:
- US exports to Mexico totalled $322bn
- Imports from Mexico to the US – $475 billion
Economist Gabriela Siller notes that a 25% duty could lead to a 12% drop in Mexican exports and a 4% reduction in the country’s GDP in 2025.
The political component: Mexico accuses Trump of lying
In addition to economic aspects, Washington’s new tariff policy affects political relations between the two countries.
Sheinbaum called the Trump administration’s accusations of the Mexican government’s ties to drug cartels“slanderous”.
“This is another political manoeuvre by Trump. We are actively fighting drug trafficking: in recent months, we have seized more than 20 million doses of fentanyl and detained more than 10,000 people involved in drug trafficking,” the President said.
As a reminder, Donald Trump justified the new duties by “Mexico’s inability” to stop fentanyl smuggling and illegal migration to the US.
The leader of the ruling party, Ricardo Monreal, called Washington’s actions “one of the harshest attacks on Mexico’s economy in its independent history”.
Experts predict further escalation of the trade conflict between the countries. Mexico may step up its retaliatory measures, in particular, affecting the US automotive and energy sectors.
This issue is expected to be central to the talks between Washington and Mexico City next week.
