Mexico has declared its intent to respond firmly against the recent tariffs imposed by the United States. On March 4, 2025, U.S. President Donald Trump enacted 25% tariffs on imports from Mexico and Canada, meaningfully impacting trade relations amid the backdrop of the USMCA (United States-Mexico-Canada Agreement). Claudia Sheinbaum, President of Mexico, outlined the government's retaliatory measures, emphasizing the need for national solidarity and calculated economic responses.
Sheinbaum announced on Tuesday, "Es inconcebible que no se piense en el daño que se va a causar tanto a ciudadanos y empresas de los Estados Unidos por el incremento en los precios de los artículos que se producen en nuestro país, como también el daño que se va a provocar por detener la creación de empleos en ambos países." This statement reflects her position on the substantial risks posed by these tariffs to both Mexican and American economies.
The decision behind the tariffs, according to the White House, stems from perceived inadequacies on Mexico's part concerning drug trafficking and immigration policies. A statement released by the U.S. government suggests the tariffs are necessary because the neighboring country has not adequately dealt with the influence of drug cartels and similar security issues. The U.S. has asserted its concerns over fentanyl trafficking, linking the economic policy directly to security issues.
“Nadie gana con esta decisión, por el contrario, afecta a los pueblos que representamos,” Sheinbaum reaffirmed, stressing the negative repercussions of such unilateral actions. The response from the Mexican government is set against the backdrop of coordination and cooperation against organized crime but also calls for equal respect between nations. Sheinbaum declared, "Cooperación y coordinación, sí; subordinación, intervencionismo, no. A México se le respeta, somos naciones iguales." This indicates Mexico's insistence on sovereignty and fairness within international relations.
Alongside Mexico's countermeasures, Canada has also signaled its plan to impose reciprocal tariffs on U.S. commerce valued at US$155 billion. This joint stand reflects growing tensions among the countries bordering North America, with analysts warning of the potential for damaging trade wars affecting the stability of regional economies.
During her announcement, Sheinbaum noted the significant achievements made by Mexico's government since the beginning of her administration on October 1, 2024, emphasizing the decrease of fentanyl seizures by 50% within U.S. jurisdictions. This statistic aligns with Mexico’s efforts to combat organized crime effectively. "Las cifras de la Oficina de Aduanas y Protección Fronteriza de ese país muestran que las incautaciones de fentanilo en Estados Unidos provenientes de México se redujeron en 50% de octubre de 2024 a enero de 2025," she continued, which counters the narrative laid out by the U.S. government.
The President mentioned the seizure of 121.4 tons of drugs and the dismantling of 329 clandestine drug labs as significant accomplishments of her administration. Notably, Sheinbaum has handed over 29 drug lords to U.S. authorities, indicating strong cooperation on security matters even amid growing tension with the U.S.
With the stakes at such high levels, Sheinbaum announced plans to hold public assemblies, the first being scheduled for March 9, 2025, at the Zócalo in Mexico City, where she will reveal exact tariff measures and their potential impact on the economy. She called upon the Mexican people to unite during this time of uncertainty: "Hago un llamado al pueblo de México, a todas y a todos, a enfrentar juntos este desafío. A mantenernos con unidad. Reitero, es tiempo de la defensa de México y su soberanía." This rallying cry emphasizes national unity against perceived external pressures.
The impending tariffs have ignited concerns over economic repercussions. The Mexican Stock Exchange experienced fluctuations following the tariff announcements, particularly marked by the peso losing almost one percent of its value, edging close to 21 pesos per dollar. The economic forecasts suggest potential declines of 3% to 4% in GDP, alongside job losses and possible reductions in foreign investments, deeply alarming figures for Mexican economic planners.
Experts warn of the larger implications of continued tariffs as the region's strongest economies face significant risk. Ignacio Martínez Cortés, coordinator at the Laboratory for Analysis of Trade, Economy, and Business (LACEN), noted the risks inherent with Trump's decision not just for Mexico but for supply chains dependent on smooth trade flow between the three nations involved. He cautioned, "Provocaría desabasto en los inventarios de las empresas, aumento de precios y rompimiento del encadenamiento industrial de las empresas intrafirma.”
Claudia Sheinbaum appears prepared with multiple tactical plans, designated as A, B, C, and D, depending on how the economic situation evolves. While she expresses commitment to maintaining cooperative economic relations, firmly planting her stance against perceived attacks on Mexico’s sovereignty, she provides assurance of national economic strength and resilience. The subsequent weeks will be pivotal for figuring out not only the measures to be taken but also the dynamics of economic diplomacy between two neighboring countries.
With each day drawing closer to the planned assembly, the international community watches closely, awaiting Sheinbaum's definitive response to U.S. actions. How this situation plays out could very well define not only trade relations but the broader geopolitical dynamics of North America for years to come.