“If the United States levies tariffs, Mexico will also increase tariffs.” 27, Mexican President Simbaum said at a press conference. Reuters said it was her clearest statement yet that the country was preparing to retaliate against possible tariffs on Mexican goods by president-elect Donald Trump. Ebrard, the Secretariat of Economy who was also at the press conference, said US tariffs on Mexican goods not only violated trade agreements between Mexico, Canada and the US, but “Shot myself in the foot”, it could lead to 400,000 job losses, rising prices and slowing economic growth, with the US car industry in particular set to be hit hard. On the evening of the 27th, local time, Donald Trump and Singbaum spoke on the phone. Donald Trump said in a post on his social media platform, truthsocial, that Zimbaum “Agreed to stem the flow of Mexican immigrants into the United States, effectively closing the southern border.”. Simbaum was quick to retort: “Mexico’s position is not to close the border, but to build a bridge between the government and the people.” The different statements by the US and Mexican leaders drew media attention.
“Shoot yourself in the foot.”
Donald Trump on the 25th threatened on his first day in office to sign an order imposing 25% tariffs on Canadian and Mexican goods, until they stopped illegal immigration and drugs, notably fentanyl. On the 26th she said threats and tariffs would not stop immigration or drug consumption in the US, and she has written to Donald Trump urging dialogue and co-operation. When asked again on the 27th, “If the US imposed tariffs, Mexico would raise tariffs as well. So this is a technical move. In this case, it represents a benefit for Mexico,” said Sinebaum
Zimbaum was sworn into office in October, becoming the first female president in Mexico’s history. After Donald Trump’s tariff threat, he called it “Unacceptable,” AFP said, noting that Mexican cartels existed primarily to serve American drug consumption. At a press conference the day before, she said the problem of illicit arms trafficking from the United States into Mexico remained serious. Of the illegal weapons seized by Mexican law enforcement, 70 percent originated in the United States. Mexico is neither the producer of these weapons nor the main consumer of synthetic drugs, but it suffers the consequences of the violence and human casualties that result from these problems.
President-elect Donald Trump and Mexican President Shinbone. (AFP)
Mexican Economy Minister Ebrard attended a press conference with the president on the 27th to provide more detailed figures. He said a 25 percent tariff on Mexican goods would affect U.S. companies operating in Mexico, especially automakers like General Motors, Stellantis and Ford, which ship auto parts from the United States to Mexico, assembled with locally produced components, the finished product is exported to the United States. If a 25% tariff were imposed, the prices of these cars would rise sharply. In the U. S. pickup market, for example, tariffs would add $3,000 to the cost of a new pickup truck. Nearly 90 percent of pickup trucks sold in the United States are made in Mexico and are especially popular in rural areas that are Donald Trump’s ticket holders, Reuters said. Analysts at Barclays Estimate that a 25% import tariff would essentially wipe out all profits at the Big Three, GM, Stellantis and Ford.
Ebrard also cited a study based on data from US carmakers producing in <loc_1> that said about 400,000 jobs would be lost if the tariffs claimed by the US president were implemented. “The main ones affected are American consumers and American companies… That’s why we say it’s a shot in the foot,” the Washington Post said Monday, although the Mexican economy is heavily dependent on trade with the United States, the American market relies on imports from Mexico for cars, machinery, food, and so on.
Mexican president refutes Donald Trump’s claim
On the evening of the 27th, Donald Trump and Zimbaum spoke on the phone to discuss illegal immigration. According to the New York Times, both sides initially spoke positively of the call, which Trans described as “Wonderful and productive” and Zimbaum as “Excellent”. But the two soon diverged over the specifics of the call.
“Donald Trump was quick to claim victory,” the Associated Press said. In a post on social platform X, Sinebaum said she and Donald Trump “Discussed Mexican strategies on immigration, and I mentioned that caravans no longer reach the northern border because they are being addressed within Mexican borders”. Donald Trump, writing in the Society for truth, said he “Agreed to stem the flow of Mexican immigrants into the United States, effectively closing the southern border, with immediate effect.”, we also discussed what could be done to stop the flow of large amounts of drugs into the United States.
Agence France-presse said this prompted Zimbaum to quickly issue a second post: “We reiterate that Mexico’s position is not to close the border, but to build a bridge between the government and the people.”
“Washington Post” said Simbaum mentioned only that no caravan arrived at the U. S. border, but she has no intention of changing Mexican immigration policy. While migrants typically travel through the most dangerous areas of Mexico in caravans at the southern tip of the country, the caravans usually travel only a few days before being disbanded by the Mexican authorities. No large immigrant caravan has reached the U. S. border in at least six years. The Associated Press says Mexican authorities, under pressure from the United States, have rounded up illegal immigrants across the country over the past few years and sent them to southern Mexico. Experts believe this strategy is an attempt to exhaust immigrants until they give up. Against this backdrop, immigration to the US has fallen sharply, with arrivals at the us-mexico border down 40 per cent from a record high in December.
“If it’s a trade war, it’s a trade war.”
(CNN) — if Donald Trump CNN a trade war with Canada and Mexico, it would significantly increase the daily expenses of the American people. In 2022, the United States imported $44.1 billion worth of agricultural products from Mexico, accounting for one-fifth of all agricultural products consumed in the United States, according to official U.S. data. Mexican imports accounted for 90 percent of all avocado eaten by Americans in 2022. So if Donald Trump does impose tariffs, the price of farm products like avocado’s will go through the roof.
In a commentary on MSNBC’s website, he said that, at the very least, his comments showed that Donald Trump would not immediately cave in and that if he wanted a trade war, he would go ahead and suffer the collateral damage. According to the Associated Press, the talks with Donald Trump seemed to convince Donald Trump that his tariff threat was worth it. His initial announcement touched financial markets and generated a response that he described as a victory. Even if the proposed tariffs fail to materialise, Donald Trump can tell supporters that the mere possibility of them is an effective policy tool and that he will continue to rely on the threat of tariffs.