Mexico warns Trump tariffs would kill 400,000 US jobs, threatens retaliation By Reuters

By Sarah Morland, Raul Cortes and Brendan O’Boyle

MEXICO CITY (Reuters) -Mexican President Claudia Sheinbaum said on Wednesday Mexico would retaliate if U.S. President-elect Donald Trump adopted through alongside with his proposed 25% at some stage in-the-board tariff, a pass her govt warned may extinguish 400,000 U.S. jobs.

“If there are U.S. tariffs, Mexico would also elevate tariffs,” Sheinbaum said for the length of her typical morning press convention, in her clearest commentary yet that the country used to be getting willing imaginable retaliatory trade measures towards its top trade associate.

Mexican Financial system Minister Marcelo Ebrard, speaking alongside Sheinbaum, known as for extra regional cooperation and integration as a replacement of a warfare of retaliatory import taxes.

“It be a shot within the foot,” Ebrard said of Trump’s proposed tariffs, which appear to violate the USMCA trade deal between Mexico, Canada and the U.S.

Ebrard warned the tariffs would outcome in huge U.S. job losses, lower development and hit U.S. corporations producing in Mexico by effectively doubling the taxes they paid. “The affect on corporations is mammoth,” he said.

The proposed tariffs would hit the automotive sector’s top execrable-border exporters especially nice looking, he added, particularly Ford (NYSE:), Overall Motors (NYSE:) and Stellantis (NYSE:), and push up car costs for consumers by thousands of bucks.

Mexico is the usa’ top trade associate and its automotive industry is the country’s foremost manufacturing sector, exporting predominantly to the usa. It represents practically 25% of all North American car manufacturing.

Analysts at Barclays (LON:) said they estimate the proposed tariffs “may wipe out effectively all earnings” from the Detroit three automakers.

“Whereas it be usually understood that a blanket 25% tariff on any vehicles or protest material from Mexico or Canada may very neatly be disruptive, consumers underappreciate how disruptive this may very neatly be,” they wrote in a yelp on Tuesday.

Trump’s press group, moreover Ford and Stellantis, did no longer straight away reply to requests for comment. GM declined to comment.

Mexico’s automotive industry community AMIA said it may possibly probably put together for any possibility and wait to belief what formal actions are taken.

The Institute of Global Finance, a trade community for the global financial services and products industry, warned Mexico-U.S. family would be “no longer easy” going ahead.

“The imposition of tariffs, sooner or later main to increased protectionism, and other insurance policies affecting alternate rates and commodity costs may absorb important implications for the put,” it said in a yelp.

The USMCA is up for overview in 2026.

Katia Goya, director of global economics at Grupo Financiero Banorte (BMV:), said it used to be seemingly the three USMCA countries would look for wholesale renegotiation of the pact in wish to shapely rubber-trace it to continue in its fresh private.

“The kill of a trade struggle remark is that this may simply mean lower financial development within the usa, greater unemployment and better inflation,” Goya said.

Ebrard said USMCA trade had amounted to $1.78 trillion within the first 9 months of this three hundred and sixty five days.

“We are succesful of fragment and divide with tariffs,” Ebrard said. “Mexico does not desire conflicts and divisions, however to invent a stronger put.”