Mexican President Claudia Sheinbaum has fired back at President-elect Trump’s proposed 25% tariff on Mexican imports. She warned it could spark a trade war and fuel inflation in both countries.
Trump announced Monday that he plans to issue an executive order after taking office to impose the tariffs. The measures would also target Canada and include additional hikes on China, citing concerns over illegal immigration and drugs.
In a Truth Social post, Trump claimed record numbers of people are crossing from Mexico and Canada. He takes office on Jan. 20, 2025.
Sheinbaum, just weeks into her presidency, countered on Tuesday. She emphasized the risk to jobs and inflation on both sides of the border, particularly for U.S. automakers with factories in Mexico.
“One tariff will follow another and so on, until we put our common businesses at risk,” Sheinbaum wrote in a letter to Trump. She read the statement at a press conference, planning to send it later in the day.
Highlighting the stakes, she said, “What sense is there?” pointing out the impact on General Motors and Ford. Sheinbaum argued such tariffs would strike at the heart of U.S.-Mexico trade relations.
Mexico’s automotive industry is a cornerstone of its economy, making up over 35% of its manufacturing exports. Nearly 79% of Mexican-made vehicles head to the U.S., accounting for nearly 25% of all North American vehicle production.
“It is unacceptable and would cause inflation and job losses in Mexico and the United States,” she reiterated, questioning who would ultimately pay the price for these tariffs.
Sheinbaum offered an olive branch, proposing discussions between her administration and Trump’s incoming team. She also plans to seek dialogue with Canadian Prime Minister Justin Trudeau.
Trump, in his post, described migrant caravans from Mexico as “unstoppable” and declared the tariff would remain until the flow of drugs and illegal immigration ends. “It is time for them to pay a very big price!” he wrote.
Sheinbaum pushed back, saying Mexico is already working to curb migration. She noted a sharp decline in border encounters since June, when President Biden limited arrivals with a presidential proclamation. September numbers were the lowest since early 2021.
She also pointed out a shared problem: U.S.-made guns fueling violence in Mexico. “We do not produce weapons, we do not consume the synthetic drugs. Unfortunately, we have the people who are being killed by crime that is responding to the demand in your country,” she said.
Fentanyl remains a central issue. The deadly synthetic opioid, 50 times stronger than heroin, has taken countless American lives. Many illegal drugs are laced with fentanyl, often unbeknownst to users. Sheinbaum stressed the need for cooperation and dialogue to address these interconnected challenges.