By David Alire Garcia and Ana Isabel Martinez
MEXICO CITY (Reuters) – Mexican President Claudia Sheinbaum responded to the U.S.’ decision to impose 25% tariffs on all Mexican goods by ordering retaliatory measures, leading to a trade war between the two nations.
In a detailed statement posted on X, Sheinbaum expressed a preference for dialogue over conflict with the U.S., but stated that Mexico had to retaliate. She instructed her economy minister to implement a contingency plan, including both tariff and non-tariff actions, to defend Mexico’s interests.
While not specifying the particular U.S. goods targeted, Mexico, heavily reliant on the American market, surpassed China as the primary destination for U.S. exports in 2023.
Sources familiar with the matter indicated that Mexico was considering imposing retaliatory tariffs ranging from 5% to 20% on various U.S. imports, such as pork, cheese, fresh produce, steel, and aluminum. Initially, the auto industry would be exempt from these measures.
Economy Minister Marcelo Ebrard denounced Trump’s tariffs as a breach of the U.S.-Mexico-Canada Agreement and declared that Mexico’s response was already in motion. “Plan B is underway,” Ebrard affirmed, expressing confidence in Mexico’s stance.
Census Bureau data revealed that U.S. exports to Mexico exceeded $322 billion in 2023, while Mexico shipped over $475 billion worth of products to the United States. Approximately one-third of Mexico’s GDP relies directly on exports to the U.S., as highlighted by Grupo Financiero BASE’s economic analysis director, Gabriela Siller.
Siller warned that with a universal 25% tariff, Mexican exports could decline by around 12%, potentially causing a 4% drop in Mexico’s GDP for 2025 if the tariffs remain in place throughout the year.
In her statement, Sheinbaum refuted the White House’s claim that Mexican drug cartels have ties to the government, an accusation used by the Trump administration to justify the tariffs. She highlighted her government’s efforts to combat drug trafficking and opioid smuggling, seizing millions of doses of fentanyl and apprehending thousands of individuals linked to the illicit trade.
Mexico’s ruling party congressional leader, Ricardo Monreal, described the U.S. actions as “one of the most severe attacks Mexico has faced in its history as an independent nation,” in an interview with broadcaster Milenio.
(Reporting by David Alire Garcia and Ana Isabel Martinez; Additional reporting by Andrea Shalal in Washington; Writing by Cassandra Garrison; Editing by Stephen Eisenhammer, Sonali Paul and William Mallard)
