Trade tensions between the United States and Mexico are again heating up after President of Mexico, Claudia Sheinbaumannounced the application of reply rates to imported goods from the US. This step was taken in response to the policy of the President’s government Donald Trump which unilaterally raises the tariff by 25% of all products derived from Mexico.
In a statement uploaded on the X social media platform, Sheinbaum stressed that his government prioritized dialogue rather than confrontation. However, with the protectionist policy of Washington, Mexico felt the need to take similar steps to protect its economic interests.
Mexico Prepare a reply rate
Sheinbaum instructed the Ministry of Economy to immediately implement a tariff and non-tariff policy as part of the “plan B” that had been prepared previously. Although not revealing in detail what items will be charged a reply rate, a report from Reuters said that the Mexican government has prepared a list of products that will be subject to tariffs ranging from 5% to 20%. These products include pork, cheese, fresh agricultural products, steel, and aluminum manufacturing. Meanwhile, the automotive industry – one of the main sectors in trade relations between the two countries – for the time being included in this reply tariff policy.
According to data from the US Census Bureau, the value of US exports to Mexico reached more than US $ 322 billion in 2023, while Mexico exported products worth more than US $ 475 billion to the US. Mexico itself has become the main trading partner of the US, replacing China as the biggest export destination for American products.
Political accusations and tensions
In the same statement, Sheinbaum also denied accusations from the White House which said that the Mexican government had a relationship with drug cartels. This accusation was previously used as one of the reasons by the Trump government to impose high tariffs on Mexico products. Sheinbaum stressed that his country had taken serious steps in combating drug trafficking, including confiscation of 20 million fentanyl doses and detention of more than 10,000 people involved in the narcotics network.
Trump argued that the tariff policy against Mexico, Canada, and China was carried out as a form of punishment because the three countries were considered to have failed to control the flow of illegal immigrants and the circulation of drugs to the US. In addition to imposing a 25% tariff on goods from Mexico and Canada, Trump also applies 10% import duties to import energy products from Canada and all goods from China.
Canada responds
Not only Mexico, Canada also responded to the US tariff policy by implementing a reply duty. Canadian Prime Minister, Justin Trudeau, appealed to his citizens to limit the consumption of American products and announce two stages of applying new tariffs to US imported goods, which will come into force on Tuesday.
Trudeau stated that Trump’s unilateral actions could damage the long -term relationship between the North American trading allies. He also stressed that Washington’s accusation of Canadian involvement in fentanil trade and illegal migration was baseless. “Less than 1% of fentanil and illegal crossing to the United States come from Canada,” he said.
Global impact of US tariff policies
The protectionist policy pursued by Trump triggered uncertainty in the global market. High tariffs on Mexico, Canada, and China have the potential to disrupt the international supply chain and increase the price of goods for American consumers themselves. This policy also worsens trade relations between the US and its main partners, who have been the main providers of food, oil, vehicles, wood, and electronic goods for the United States.
With the tariff policy scheduled to take effect on February 5, 2025, the world is now waiting for the next step from each country. Will this trade war be more tapered or there will be a meeting point in the upcoming negotiations?