Mexico Threatens to Retaliate if Trump Imposes Tariffs

Mexico’s president, Claudia Sheinbaum, has suggested that Mexico could retaliate with tariffs of its own, after U.S. President-elect Donald Trump threatened to impose import duties of 25 per cent on Mexican goods.

Trump said the action would be taken if Mexico doesn’t stop the flow of drugs and migrants across the border. Sheinbaum said she was willing to engage in talks on the issues, but said drugs were a US problem.

Trump threatened the massive hikes in tariffs on goods coming from Mexico, Canada and China starting on the first day of his second term.

He had already vowed on the campaign trail to impose new tariffs on all imported goods, altering the relationship the United States has with its biggest trading partners, particularly in Asia, and potentially causing ripple effects on their economies.

Although the potential consequences are uncertain, the tariffs will likely hurt countries in Asia that rely on sales to the United States to boost their economies.

A tariff is a tax on goods that are imported.