MEXICO CITY: Mexican President Claudia Sheinbaum on Saturday (Feb 1) ordered retaliatory tariffs in response to the US decision to slap 25% tariffs on all goods coming from Mexico, as a trade war broke out between the two neighbors.
In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its top trade partner to the north, but that Mexico had been forced to respond in kind.
“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Sheinbaum posted, without specifying what US goods her government will target.
For decades, the two neighbors have seen cross-border trade grow, including from a highly integrated auto industry, as well as massive volumes of crude oil, natural gas and motor fuels that move in both directions.
There is also a booming farm trade. Mexico sends large volumes of fresh produce north, including avocados and tomatoes, while US farmers supply huge amounts of corn and other grains to Mexican buyers.
Overall, the United States is by far Mexico’s most important foreign market, and Mexico in 2023 overtook China as top destination for US exports.
Mexico has been preparing possible retaliatory tariffs on imports from the US, ranging from 5 percent to 20 percent, on pork, cheese, fresh produce, manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.
Economy Minister Marcelo Ebrard said on X that Trump’s tariffs were a “flagrant violation” of the US-Mexico-Canada Agreement.
