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Mexico vows retaliation to Trump tariffs without detailing targets
Published by Global Banking and Finance Review
Posted on February 2, 2025
3 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 2, 2025
3 min readLast updated: January 26, 2026
Mexico plans retaliatory tariffs after Trump imposes 25% tariffs on Mexican imports, straining US-Mexico trade relations.
By David Alire Garcia and Ana Isabel Martinez
MEXICO CITY (Reuters) - Mexican President Claudia Sheinbaum on Saturday ordered retaliatory tariffs in response to the U.S. decision to slap 25% tariffs on all goods coming from Mexico, as a trade war broke out between the two neighbors.
In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its top trade partner to the north, but that Mexico had been forced to respond in kind.
"I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non-tariff measures in defense of Mexico's interests," Sheinbaum posted, without specifying what U.S. goods her government will target.
The United States is by far Mexico's most important foreign market, and Mexico in 2023 overtook China as top destination for U.S. exports.
Mexico has been preparing possible retaliatory tariffs on imports from the U.S., ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.
Economy Minister Marcelo Ebrard said on X that Trump's tariffs were a "flagrant violation" of the U.S.-Mexico-Canada Agreement.
"Plan B is underway," Ebrard said. "We will win!"
U.S. exports to Mexico accounted for more than $322 billion in 2023, Census Bureau data showed, while the U.S. imported more than $475 billion worth of Mexican products.
Almost a third of Mexico's gross domestic product depends directly on exports to the United States, Grupo Financiero BASE's economic analysis director, Gabriela Siller, said on X.
"With a universal tariff of 25%, it is estimated that exports could fall by around 12%. With this, Mexico's GDP could fall by 4% in 2025, if the tariff is maintained all year round," Siller said.
In her post, Sheinbaum also rejected as "slander" the White House's allegation that drug cartels have an alliance with the Mexican government, a point Trump's administration used to justify the tariffs.
Trump said the tariffs against Mexico were due to the country's failure to stop fentanyl, a deadly opioid, from getting into the United States, as well as what he called uncontrolled migration.
Sheinbaum touted her government's record since she took office in October - seizing 20 million doses of fentanyl, in addition to detaining over 10,000 people tied to drug trafficking.
The U.S. measures were "one of the heaviest attacks Mexico has received in its independent history," Mexico's ruling party congressional leader Ricardo Monreal told broadcaster Milenio.
(This story has been refiled to fix the number of people detained for drug trafficking to 10,000, not 10,0000, in paragraph 13)
(Reporting by David Alire Garcia and Ana Isabel Martinez; Additional reporting by Andrea Shalal in Washington; Writing by Cassandra Garrison; Editing by Stephen Eisenhammer, Sonali Paul and William Mallard)
The article discusses Mexico's response to Trump's 25% tariffs on Mexican imports, including potential retaliatory measures.
Trump cited Mexico's failure to stop fentanyl from entering the US and uncontrolled migration as reasons for the tariffs.
A 25% tariff could lead to a 12% drop in exports and a 4% GDP decline in 2025 if maintained all year.
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