Mexican President Claudia Sheinbaum didn't mince words on Wednesday. In response to U.S. President-elect Donald Trump's proposed 25% across-the-board tariff on Mexican goods, she warned that such a move could boomerang back on the U.S., putting 400,000 American jobs on the line and making everyday items pricier for consumers. 😱
\"If there are U.S. tariffs, Mexico would also raise tariffs,\" Sheinbaum declared during a press conference. Looks like things could get heated between the two neighbors! 🔥
Standing beside her, Mexican Economy Minister Marcelo Ebrard called for unity instead of a trade war. \"It's a shot in the foot,\" he said about Trump's tariff plans, which could violate the USMCA trade deal between Mexico, Canada, and the U.S. 💔
Ebrard highlighted that these tariffs wouldn't just hurt Mexico—they'd also slam U.S. companies operating south of the border by effectively doubling their taxes. Ouch! \"The impact on companies is huge,\" he emphasized.
The automotive industry could be hit hardest. Top exporters like Ford, General Motors, and Stellantis might feel the pinch. Ebrard pointed out that a whopping 88% of pickup trucks sold in the U.S. are made in Mexico. \"Our estimate is that the average price of these vehicles will increase by $3,000,\" he noted. That's a lot of cash! 💸
Interestingly, these pickups are super popular in rural areas that largely supported Trump. Could his own supporters feel the burn? 🔥
Later that day, Sheinbaum and Trump chatted over the phone. She took to social media platform X to share that they discussed \"strengthening collaboration on security issues\" and described the conversation as \"excellent.\" 🤝
Trump has stated that the tariffs would stay until the flow of drugs—especially fentanyl—and migrants into the U.S. is under control. Sheinbaum countered by saying migrant caravans are no longer reaching the U.S.-Mexico border \"because they are attended to\" in Mexico. 🇲🇽
Meanwhile, many analysts see Trump's tariff threats as more of a negotiating tactic. David Kohl, chief economist at Julius Baer, commented, \"The lack of a clear link between this threat and questions related to trade suggests the new president plans to use tariffs as a negotiating strategy to achieve goals largely unrelated to trade.\" 🎯
It's a complex situation, but one thing's for sure—the stakes are high, and everyone's watching to see what happens next! 👀
Reference(s):
cgtn.com
