Its president, Claudia Sinbaum, announced the imposition of retaliation in response to the 25% duties that their government decided on all Mexican products.
This decision marks the start of a trade war between the two neighboring countries.
In a post on the X platform, Seinbaum stressed that her government prefers dialogue instead of confrontation with her main commercial partner, but was forced to respond by similar measures.
“I have ordered the Minister of Economy to implement the plan B we have processed, which includes tariff and non -tariff measures to defend Mexico’s interests,” the president said, without specifying which US products will be targeted.
Blow to commercial cooperation
The United States is Mexico’s most important commercial partner, with the country surpassing China in 2023 as a top destination for US exports.
According to sources knowing Mexican preparations, the country’s response may include duties of 5% to 20% on imported products from the US, such as pork, cheese, fresh produce, made of steel and aluminum. However, the automotive industry seems to be excluded initially.
Finance Minister Marcelo Embrad described Trump’s duties as a “blatant violation” of the US-Mexico-Canada Agreement (USMCA) and said “Plan B is in full swing”.
Financial consequences
In 2023, US exports to Mexico amounted to more than $ 322 billion, while imports of Mexican products in the US exceeded $ 475 billion, according to US census office data.
Economist Gabriella Schiller of Grupe Financiero Base warned that the new 25% duty can lead to a decrease in Mexican exports by about 12% and cause a 4% GDP drop in 2025, as long as the measure remains in force. for the whole year.
Political reactions and categories
Seinbaum rejected the White House’s allegations that the Mexican government is working with drug cartels, an argument used by the Trump administration to justify duties.
The US president has argued that the measure was necessary because of Mexico’s failure to stop the movement of Fentanyl and “uncontrolled immigration”.
The Mexican president opposed that its government has seized 20 million doses of fentanyl and captured more than 10,000 people linked to drug smuggling from taking over its duties in October.
Ricardo Montreal, leader of the ruling party in Congress, described the US measures as “one of the heaviest attacks that Mexico has received in modern history”.
Perspective and next steps
The Mexican government seems determined to implement countermeasures, while the trade confrontation is expected to have significant economic and diplomatic impact on both countries. The evolution of the conflict will depend on whether the two sides will be able to return to the negotiating table, as tension escalates at a critical time for international markets and the global economy.
