Mexico Strikes Back Sheinbaum Orders Tariffs As Trade War With US Escalates

Mexican President Claudia Sheinbaum announced retaliatory tariffs on Saturday after the United States fully implemented a 25% tariff on all imports from Mexico, further antagonizing both countries.

In the statement on X, Sheinbaum stressed Mexico prefers dialogue, but she cannot avoid protecting economic interests. ‘I’ve told my economy minister to put Plan B in motion, which would include tariffs and non-tariff measures against Mexico,’ she said, failing to name a single US product under threat.

US and Mexico share a highly integrated trade relationship, especially in the automotive, energy, and agricultural sectors. Mexico exports vast volumes of fresh produce, including avocados and tomatoes, and imports significant quantities of corn and other grains from the US In 2023, Mexico overtook China as the leading recipient of US exports.

According to sources, Mexico’s retaliatory tariffs would range from 5% to 20% on US pork, cheese, fresh produce, steel, and aluminum, though the auto industry would initially be exempt. Economy Minister Marcelo Ebrard branded the US tariffs as a “flagrant violation” of the USMCA, assuring that Mexico’s response was underway.

Experts say that if the tariff war prolongs, it could hit Mexico’s economy very hard, especially since the US exported over $322 billion to Mexico in 2023. According to estimates by economist Gabriela Siller, Mexico’s GDP could fall by 4% in 2025 if the tariffs continue for the entire year.

For their part, the Sheinbaum administration dismissed all claims that she and her administration are linked with Mexican cartels, saying “it’s calumny.” She says the reason tariffs are imposed should be that fentanyl is smuggling and immigration and Mexico did its part to apprehend several smuggling operations. And yet, some Mexican officials took to calling a declaration one of the worst the country has received.

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