Mexican President Claudia Sheinbaum on Saturday ordered retaliatory tariffs in response to the U.S. decision to slap 25% tariffs on all goods coming from Mexico, as a trade war broke out between the two neighbors.
Sheinbaum said through a lengthy post on X that her government prioritized dialogue over conflict with its primary northern trade partner but was compelled to respond in kind.
“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 posted, without any specifications on what U.S. goods her government will target.
For decades, the two countries have been in a cross-border that witnessed growth, including from a highly integrated auto industry, along with large quantities of crude oil, natural gas, and motor fuels flowing in both directions. There has been a booming farm trade, and Mexico sends large volumes of fresh produce to the north, while U.S. farmers supply huge amounts of corn and other grains to Mexican buyers as per reports.
Overall, the United States is by far Mexico’s most important foreign market, and Mexico in 2023 overtook China as a top destination for U.S. exports.
Mexico has been planning potential retaliatory tariffs on U.S. imports, ranging from 5% to 20%, on products such as pork, cheese, fresh produce, manufactured steel, and aluminum, according to sources familiar with the situation.
Economy Minister Marcelo Ebrard stated on X that Trump’s tariffs constituted a “blatant violation” of the U.S.-Mexico-Canada Agreement.
“Plan B is underway,” Ebrard said. “We will win!”
Census Bureau data showed that U.S. exports to Mexico accounted for more than $322 billion in 2023, while the U.S. imported more than $475 billion worth of Mexican products. Nearly one-third of Mexico’s gross domestic product is directly tied to exports to the United States, according to Gabriela Siller, economic analysis director at Grupo Financiero BASE, who shared the statement on X.