Mexico to Retaliate Against U.S. Tariffs
Mexico's President, Claudia Sheinbaum, announced that the country will impose retaliatory tariffs on U.S. goods in response to the 25% tariffs recently implemented by the United States. Full details of the tariffs will be revealed on Sunday during a public event in Mexico City’s central plaza.
The delay suggests that Mexico is seeking to de-escalate the trade war initiated by U.S. President Donald Trump.
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Mexican Government’s Response
Sheinbaum emphasized that Mexico’s government has had a plan ready since January for such a scenario, and stressed that the U.S. tariffs lacked justification, calling them “offensive, defamatory, and without support.” She rejected the White House's claims that Mexican drug traffickers persist due to an "intolerable relationship" with the Mexican government.
Trump’s tariffs are framed as a strategy to pressure Mexico to tackle issues related to migration and drug trafficking into the U.S.
In response to U.S. allegations, Sheinbaum highlighted Mexico’s efforts in the fight against cartels, including seizing fentanyl and dismantling methamphetamine labs.
Additionally, Mexico sent the U.S. 29 cartel figures it had requested. She argued that the tariffs would harm both countries, stating, “No one wins with this decision.”
Global Reactions and Economic Concerns
The tariffs have already prompted reactions from other countries, including China and Canada, who announced retaliatory measures of their own. U.S. Secretary of Commerce Howard Lutnick suggested that discussions were ongoing and that a resolution might be reached soon.
Trade experts are skeptical about the long-term effects of the tariffs. Timothy Wise, an agricultural trade expert, stated that the tariffs could worsen food inflation in the U.S. and negatively impact American consumers, particularly Trump’s base.
Impact on the U.S. and Mexican Economies
Economists predict that the tariffs could disrupt economic trade flows, boosting inflation and slowing growth in both countries.
Gabriela Siller, an economic analyst with Banco Base, noted that while the Mexican peso had fallen, volatility remained relatively stable due to market speculation that the U.S. may soon reverse its decision.
Despite the economic risks, Sheinbaum's approval ratings in Mexico are high, and her government has maintained a stance of negotiating from a position of strength, invoking national sovereignty.
The public event on Sunday will likely seek to capitalize on her popularity and foster a sense of national unity.
Concerns at the U.S.-Mexico Border
At the U.S.-Mexico border, truck drivers like Carlos Ponce, who transports auto parts from Ciudad Juarez to El Paso, are concerned about potential job losses or increased transport costs as Mexican manufacturers may seek alternative trade partners.
“Things could change drastically,” Ponce said, voicing his uncertainty over how the situation might evolve.
Other border business owners, such as Alan Russell, head of an American company that helps manufacturers set up in Mexico, expressed doubt over Trump’s narrative that tariffs would encourage American companies to return to the U.S. to set up factories.
Russell noted that the uncertainty around tariffs makes it unlikely that companies will relocate without clear expectations.
Uncertainty Despite Mexico’s Efforts
Many, like Manuel Sotelo, whose truck fleet crosses the border daily, were shocked that tariffs were enforced despite Mexico’s significant efforts to comply with U.S. demands.
Mexico has deployed 10,000 troops to the border and taken other steps to curb illegal migration and drug trafficking. Sotelo, a Trump supporter, had hoped that Trump might reverse his decision after Mexico’s proactive measures.
As both nations grapple with the economic implications of these trade policies, all eyes will be on the public event in Mexico City on Sunday, where the Mexican government is set to announce its full response to the U.S. tariffs.
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Written By HowNHowTo.com