Mexican President Claudia Sheinbaum has fired back at President-elect Trump’s plan to impose a 25% tariff on Mexican imports. She warned it could spark a trade war and drive inflation higher in both countries.
Trump announced Monday he would issue an executive order after taking office to implement the tariff. It would apply to goods from Mexico and Canada, alongside increased tariffs on China. He tied the measures to illegal immigration and drug trafficking concerns.
On Truth Social, Trump claimed thousands were "pouring through" Mexico and Canada at unprecedented levels. He takes office on Jan. 20, 2025.
Sheinbaum, in office just seven weeks, pushed back Tuesday. She warned the tariffs could threaten jobs and businesses in both nations. She emphasized the impact on U.S. auto manufacturers operating in Mexico.
"One tariff will follow another, risking our common businesses," Sheinbaum wrote in a letter to Trump. She read the letter at a press conference and plans to send it today.
She pointed out that tariffs would hit U.S. automakers like General Motors and Ford with plants in Mexico. "What sense is there?" she asked, criticizing the escalating trade measures.
The Mexican auto industry is vital to the country’s economy, making up over 35% of its manufactured exports. The U.S. is the top destination, with 79% of Mexican-made vehicles shipped there.
"Tariffs will bring inflation and job losses to both sides," Sheinbaum said, according to the Associated Press. "Who will it hurt? General Motors?" She offered to open dialogue with Trump and hoped for a meeting soon.
Sheinbaum also plans to seek talks with Canadian Prime Minister Justin Trudeau. She stressed the need for cooperation rather than confrontation.
Trump doubled down in his post, citing caravans from Mexico as "unstoppable." He said the tariff would remain until illegal immigration and drug trafficking were resolved.
"This invasion must end," Trump declared. He demanded Mexico and Canada act decisively to solve the issues.
Sheinbaum argued Mexico has worked to reduce migration flows. Border numbers have dropped significantly since June, following U.S. policy changes under President Biden.
In September, there were 101,790 border encounters, the lowest since early 2021. She noted no signs of a sharp increase since.
She also highlighted the role of U.S. guns fueling violence in Mexico. "We do not produce weapons, but we suffer their consequences," she said. She called for shared solutions to regional challenges.
Fentanyl, a synthetic opioid, remains a deadly issue in the U.S., causing countless overdose deaths. Sheinbaum stressed the need for understanding, saying the crisis demands collaboration, not conflict.