Mexican Economy Minister Marcelo Ebrard warned that U.S. President-elect Donald Trump’s proposed 25% tariff on all imports would lead to the loss of 400,000 jobs and hinder U.S. economic growth, while also impacting Mexico’s exports. In a morning press conference, Ebrard described the tariff plan as “a shot in the foot” and advocated for more regional cooperation and integration rather than escalating trade wars through retaliatory taxes.
Ebrard emphasized that the automotive sector, particularly major cross-border exporters like Ford, General Motors, and Stellantis, would bear the brunt of the proposed tariffs. The move would likely increase vehicle prices significantly, placing additional strain on U.S. consumers.
Mexico is the U.S.’s top trading partner, and its automotive industry is crucial to the North American market, producing nearly 25% of all vehicles on the continent, with most of those exports headed to the U.S. Mexican President Claudia Sheinbaum echoed calls for dialogue between the two countries and suggested that Mexico might consider retaliatory tariffs.
The potential for a new trade conflict looms, with the North American Free Trade Agreement (NAFTA) due for renegotiation in 2026. In response, Mexico’s automotive industry group AMIA stated it would monitor the situation closely and prepare for all outcomes.
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