Mexico’s President Claudia Sheinbaum and Economy Minister Marcelo Ebrard have revealed how Mexico plans to respond to President-elect Donald Trump’s proposed tariffs on the country, warning that the move could cost 400,000 US jobs. Sheinbaum stated that Mexico would raise tariffs in response to US tariffs, while Ebrard emphasized the potential impact on US workers and consumers, particularly in the auto industry.
Trump has threatened to impose massive tariffs on Mexico, Canada, and China at a rate of 25 percent, in an attempt to boost the US manufacturing industry. However, economists doubt the effectiveness of such a drastic measure. Sheinbaum has labeled the threats as “unacceptable” and mentioned a call with Trump to discuss migration issues along the US-Mexico border.
The proposed tariffs could have a substantial impact on US companies and consumers, potentially wiping out profits from major automakers. Despite this, Trump’s team remains steadfast in its stance, claiming that tariffs are necessary to protect US manufacturers from unfair practices abroad.
The situation has raised concerns about the future of the US-Mexico-Canada free trade agreement, with officials warning that Trump’s tariffs could violate the terms of the agreement. Canadian Prime Minister Justin Trudeau has also voiced the importance of maintaining strong ties with the US, despite the tariff threats.
As the issue continues to unfold, both sides are preparing for potential economic repercussions, with Mexico ready to respond if Trump follows through on his tariff plans.
Source
Photo credit www.aljazeera.com