By María Verza and Megan Janetsky
MEXICO CITY (AP) – The Mexican president said Tuesday that he would impose retaliatory tariffs on US goods on the 25% tariffs imposed by the US, with details coming.
Mexico will announce targeted products and other measures on Sunday at an event at Mexico City’s Central Plaza. This is a delay that suggests that Mexico wants to remove the trade war caused by US President Donald Trump.
President Claudia Sheinbaum said she and Trump agreed to call this week, probably on Thursday, “We’re going to wait.” The Mexican government has said it has plans since January that are ready for this scenario.
“There is no motivation, no reason or justification to support this decision that affects our people and our nation,” Sinbaum added.
China and Canada responded quickly on Tuesday with measures.
About 80% of Mexico’s exports went to the United States, which is part of more than $800 billion in trade between countries last year.
Sinbaum called the White House’s claim that Mexican drug traffickers would last because of their “exhaustive relationships” with the Mexican government “aggressive, honourable, and unsupported.” Trump says he is targeting Mexico to force immigrants and drugs into the US to crack down on them.
She listed the young administration’s achievements against Mexican drug cartels. This involved taking away a large amount of fentanyl and dismantling 329 methamphetamine labs. She also said Mexico sent the 29 drug cartel figures it requested last week to the US.
“It’s hard to imagine that they don’t think about the damage this will cause to American citizens and businesses,” Sinbaum said. “No one wins this decision.”
The Mexican president also said Trump said he respected her on Monday, and she respected him: “This is finding a way to adjust without subordinating anyone for the benefit of our people.”
Trade experts have expressed doubts about how long Trump’s tariffs will last, saying they will raise prices for American consumers, including Trump’s bases.
“We’re going to do nothing to help US food inflation,” said Timothy Wise, an agriculture trade expert in Mexico and the US. I don’t think it’s plausible for the people in the businesses surrounding Trump to sit down and allow him to destroy their foreign markets. ”
Gabriela Siller, an economic analyst at Mexican financial group Banco Base, said in the short term, tariffs could promote inflation, disrupt economic and trade flows, and slow economic growth in both countries.
But seeing her gradually drop in the Mexican peso, she also said, “the exchange rate and volatility have not skyrocketed as the US government estimates that tariffs can be withdrawn soon.”
Mexico is most likely to lose a trade war with the US, with economists saying expanded tariffs will plunge Mexico’s economy into a recession.
However, for now, Simbaum’s approval rate in Mexico is high. She incited nationalist sentiment even before Trump took office, frequently summoning Mexico’s sovereignty, which promised to negotiate from an equal footing and push back Trump’s name change into the Gulf of Mexico’s American Gulf.
Announcing Mexico’s retaliation, Sunday’s public event aims to seize Sheinbaum’s popularity and national unity.
Still, it was a bit of comfort to those whose livelihoods could be most affected.
At the US-Mexico border, Carlos Ponce, a 58-year-old truck driver, drove the truck with auto parts from Ciudad Juarez to El Paso in Texas, as has been happening for decades. But he and many others along the border were holding their breath.
“Things can change dramatically,” Ponce said. Ponce was worried that transporters like him would lose their jobs or that they would have to drive long distances to sea ports as Mexican manufacturers were looking for other trading partners.
A long line of trucks was marked across the border of Ciudad Juarez before the tariffs.
“There’s a lot of things that haven’t been defined yet. I’m sure they’ll be redefined quickly,” said Alan Russell, head of Tecma, an American company that helps manufacturing companies set up stores in places like Ciudad Juarez.
He expressed doubt about Trump’s story that tariffs would encourage American businesses to return to the US to establish factories.
Russell said last week he helped a new manufacturer that moved from North Carolina to Mexico because his company couldn’t find enough workers.
Manuel Sotero, who moves products across borders every day, was shocked by the tariffs that came into force after the Mexican president was stepped in order to crack down on the cartel and comply with our requests to strengthen the border. They include sending troops of 10,000 to the border.
“Mexico has built a huge leap and boundary,” said Sotero, a Trump supporter who holds the bobblehead doll on display in his office. “I really thought Trump backed the course yesterday afternoon or last night.”
Original release: March 4th, 2025, 2:24pm EST
