Mexico's president and economy minister have provided the clearest picture yet of how the government will respond to tariffs proposed by US President-elect Donald Trump, Al Jazeera reported.
In response to Mr Trump's plans to impose a massive 25% tariff on Mexico, the Mexican government warned that this could result in the loss of 400,000 US jobs.
Speaking at a press conference on November 27, Mexican President Claudia Sheinbaum affirmed: "If the US imposes tariffs, Mexico will also increase tariffs."
Mexican Economy Minister Marcelo Ebrard also warned Mr Trump against starting a regional trade war, saying the cost to US workers and consumers would be heavy.
“About 400,000 jobs would be lost” in the US, he said, citing the impact of tariffs on American consumers and emphasizing: “That’s why we say it would be a terrible mistake.”
Officials also warned that Mr Trump's tariffs could violate the US-Mexico-Canada Agreement (USMCA), which bans most tariffs on trade between the three countries.
After a phone call on November 27 to discuss the issue of managing migrants in Mexico with Mr. Trump, Mexican President Sheinbaum requested a meeting with the US president-elect before he takes office on January 20, 2025.
So far, it is not just relevant government officials who have warned about the impact of the proposed tariffs on American companies and consumers.
Experts from Barclays estimate the proposed tariffs “could wipe out all profits” of the three major Detroit automakers: GM, Stellantis and Ford.
“While it is generally understood that a 25% tariff on any vehicle or component from Mexico or Canada would be disruptive, investors have yet to fully appreciate the level of disruption this could cause,” the experts said.
For its part, Mr. Trump's team remains tough on the issue.
Brian Hughes, a spokesman for Mr Trump's transition team, told Reuters that the tariffs would protect US manufacturers and workers from "unfair practices by foreign companies and markets".
The spokesman affirmed that Mr. Trump will implement policies to make life more comfortable and prosperous for the American people.
