Mexico City, Feb 1 (Reuters) - Mexican President Claudia Sheinbaum retaliated on Saturday to the U.S. decision to impose tariffs on all Mexican goods, initiating a trade dispute between the two countries.
In a detailed announcement on X, Sheinbaum expressed Mexico's preference for dialogue over conflict with its primary trading partner to the north. She noted that Mexico had to reciprocate the U.S. actions.
Sheinbaum stated, "I've directed my economy minister to enact our prepared contingency plan, incorporating tariff and non-tariff measures to safeguard Mexico's interests." However, she did not specify the U.S. products subject to Mexico's tariffs.
The United States is Mexico's largest trading partner, surpassing China as the chief destination for U.S. exports in 2023.
Mexico is considering tariffs ranging from 5% to 20% on various U.S. imports such as pork, cheese, fresh produce, steel, and aluminum, with the exception of the automotive sector, according to informed sources.
Economy Minister Marcelo Ebrard criticized Trump's tariffs, labeling them a breach of the U.S.-Mexico-Canada Agreement. Ebrard affirmed that "Plan B is in progress," and expressed confidence, saying, "We will prevail!"
Statistics from the Census Bureau showed that U.S. exports to Mexico totaled over $322 billion in 2023, while the U.S. imported more than $475 billion worth of Mexican goods.
Gabriela Siller, economic analysis director at Grupo Financiero BASE, cited that nearly a third of Mexico's GDP relies on exports to the United States. She highlighted that the GDP could decline by approximately 4% in 2025 if a 25% across-the-board tariff remains in place.
Sheinbaum denounced the White House's claim that Mexican drug cartels are linked to the government, a statement used by the Trump administration to justify the tariffs. Trump cited Mexico's alleged failure to address fentanyl trafficking and undocumented migration as reasons for the tariffs.
To counter these allegations, Sheinbaum showcased her administration's achievements, including the seizure of 20 million fentanyl doses and the arrest of over 10,000 individuals involved in drug trafficking since taking office in October.
Ricardo Monreal, the ruling party's leader in congress, described the U.S. measures as "one of the most severe attacks Mexico has faced in its history."