Mexico Hits Back With Retaliatory Tariffs as U.S. Trade War Escalates

Mexican President Claudia Sheinbaum announced retaliatory tariffs on Saturday in response to the U.S. imposing a 25% tariff on all Mexican imports, marking a major escalation in trade tensions between the neighboring nations.

Sheinbaum Calls for Dialogue But Implements ‘Plan B’

In a post on X, Sheinbaum stated that while her administration preferred diplomacy over confrontation with its largest trade partner, Mexico had no choice but to respond.

“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 wrote, without specifying which U.S. goods will be targeted.

Retaliatory Tariffs on Key U.S. Exports

Mexico is preparing tariffs ranging from 5% to 20% on several American exports, including pork, cheese, fresh produce, and manufactured steel and aluminum, according to sources familiar with the plans. The auto industry will initially be exempt from the measures.

Economy Minister Marcelo Ebrard criticized the U.S. tariffs, calling them a “flagrant violation” of the U.S.-Mexico-Canada Agreement (USMCA).

“Plan B is underway,” Ebrard declared on X. “We will win!”

U.S.-Mexico Trade Faces Major Disruption

The United States is Mexico’s largest export market, and in 2023, Mexico surpassed China as the top destination for U.S. exports. Census Bureau data shows that U.S. exports to Mexico were worth over $322 billion last year, while imports from Mexico totaled $475 billion.

Almost one-third of Mexico’s GDP is directly tied to exports to the U.S., according to Gabriela Siller, economic analysis director at Grupo Financiero BASE.

“With a universal 25% tariff, Mexican exports could drop by 12%, and the country’s GDP could shrink by 4% in 2025 if the tariff remains in place all year,” Siller warned.

Fentanyl and Immigration Disputes Intensify Trade War

The White House justified the tariffs by accusing the Mexican government of working with drug cartels, an allegation Sheinbaum dismissed as “slander.”

Former President Donald Trump defended the tariffs, citing Mexico’s failure to stop fentanyl trafficking and what he called uncontrolled illegal migration.

Sheinbaum countered that since taking office in October, her administration has seized 20 million doses of fentanyland arrested over 10,000 individuals linked to drug trafficking.

Mexico Calls U.S. Tariffs ‘One of the Heaviest Attacks’

Mexican congressional leader Ricardo Monreal called the tariffs “one of the heaviest attacks Mexico has received in its independent history.”

With both nations locked in a deepening trade conflict, global markets are closely watching how the economic battle unfolds.

👉 Stay informed with real-time updates and in-depth analysis at NewsLink7.com. Fact-checked news that matters. Follow us 24/7, 365 days. There are no sides, just the truth. Explore more stories and stay ahead with NewsLink7.com.