
Mexico’s President Claudia Sheinbaum orders retaliatory tariffs on U.S. imports, escalating trade tensions between the two nations.
At a Glance
- Mexico imposes tariffs ranging from 5% to 20% on various U.S. imports
- Response to U.S. 25% tariffs on Mexican goods
- Auto industry initially exempt from Mexican tariffs
- U.S. cites fentanyl trafficking and migration concerns as justification
- Potential 4% reduction in Mexico’s GDP by 2025 if 25% universal tariff maintained
Mexico Retaliates with Tariffs on U.S. Goods
In a retaliation that could further hurt the relationship between the United States and Mexico, President Claudia Sheinbaum has ordered retaliatory tariffs on U.S. imports. And Trump hasn’t batted an eyelid.
The decision comes as a direct response to the recent imposition of 25% tariffs on Mexican goods by the United States. While emphasizing a preference for dialogue, Sheinbaum felt compelled to protect Mexico’s national economy from what her administration views as unjustified trade barriers.
The retaliatory measures implemented by Mexico include tariffs ranging from 5% to 20% on various U.S. imports. Products affected include pork, cheese, fresh produce, and steel. Notably, the auto industry has been initially exempted from these tariffs, likely due to its significant role in the integrated North American supply chain.
Mexico Announces Retaliatory Tariffs in Response to U.S. Trade Measures
Mexico City – February 1, 2025
Mexican President Claudia Sheinbaum has ordered retaliatory tariffs on U.S. goods, responding to President Donald Trump’s decision to impose a 25% tariff on all imports from… pic.twitter.com/EASXiqYvjQ
— HewadPress (@HewadPress) February 2, 2025
Does the president think Trump didn’t expect retaliation? Of course he did. And he knows what to do next.
Economic Implications and USMCA Violations
Economy Minister Marcelo Ebrard has been vocal in his criticism of the U.S. tariffs, asserting that they violate the U.S.-Mexico-Canada Agreement (USMCA). This trade pact, intended to foster economic cooperation between the three North American nations, now faces its most significant test since its implementation. The United States remains Mexico’s largest foreign market, with substantial trade volumes flowing between the two countries.
The economic stakes are high for both nations. Analysis suggests that if a 25% universal tariff were to be maintained, it could potentially reduce Mexico’s GDP by 4% in 2025. Such a significant economic impact underscores the importance of resolving this trade dispute swiftly to prevent long-term damage to both economies.
The U.S. government has justified its tariffs by citing Mexico’s alleged failure to control fentanyl trafficking and manage migration issues effectively. These accusations have been met with strong denials from President Sheinbaum, who rejected claims of Mexican government alliances with drug cartels. In a bid to counter these allegations, Sheinbaum highlighted her administration’s efforts in combating drug trafficking since taking office.
Mexico’s ruling party leader has described the U.S. measures as a significant attack on Mexico, further heightening the rhetoric surrounding this trade dispute. As tensions escalate, the need for diplomatic solutions becomes increasingly apparent to prevent further economic repercussions for both nations.
If Mexico doesn’t want tariffs, perhaps they should do more to control the influx of illegal aliens into the United States via their country.
And sort out the drugs, too!