Mexico Threatens Retaliatory Tariffs If Trump Follows Through With His Trade Threats

Mexico may impose retaliatory tariffs on U.S. imports during the incoming administration of Donald Trump if he follows through with its threat to place tariffs on Mexican exports, Mexican Economy Secretary Marcelo Ebrard warned this week. Ebrard said the retaliatory tariffs would have significant economic consequences for both countries, as well as North America as a whole.

Ebrard pointed out the potential economic fallout from such a move from Trump, recalling his threat to imposing a 25% tariff on Mexican goods as a way of seeking concessions from Mexico on immigration enforcement.

In an interview with the local broadcaster Radio Formula, Ebrard, who served as Mexico's foreign minister during the previous administration, said "If you apply tariffs, we'll have to apply tariffs. And what does that bring you? A gigantic cost for the North American economy."

Specifically, Trump suggested the possibility of levying a 25% tariff on Mexican imports if the country fails to prevent migrants and drugs from entering the United States to a level of his liking. Trump said that should the Claudia Sheinbaum administration not implement measures he deems appropriate, tariffs could gradually increase until reaching 100%. This followed his earlier proposal of 200% tariffs on vehicles imported from Mexico, which was preceded by a vow to implement 100% tariffs on cars built there.

The minister also highlighted the potential domestic impact of such tariffs in the U.S., stressing that they would likely lead to higher inflation. He described this as an "important limitation" that could deter both governments from escalating tensions further.

Ebrard's comments reflect the ongoing uncertainty around U.S.-Mexico trade relations as Trump prepares for his second term in office. While the former president has previously threatened tariffs on Mexican goods, including cars and other exports, his stance on trade with Mexico remains a key issue for both countries moving forward.

Although Trump has signaled possible heavy tariffs on Mexican imports, Ebrard, who will lead the 2026 review of the U.S.-Mexico-Canada Agreement (USMCA), believes the relationship with the new administration will be challenging but ultimately positive. Ebrard said that Mexico will need "cold blood and intelligence" to negotiate with Trump.