Mexico Warns Trump's Tariffs On Auto Parts Could Raise US Pickup Truck Prices By $3,000

Mexico's Finance Minister Marcelo Ebrard warned that the U.S. would hurt itself by imposing a 25% tariff on goods from the former country, including car parts and vehicles made for American automakers.

During a news conference in Mexico City, which was streamed on YouTube, he highlighted that one clear example of the negative impact would be the increased cost of pickup trucks, which are very popular with U.S. buyers. According to him, the price of these trucks could go up by an average of $3,000 due to the tariffs.

"What would be the impact of a 25% tariff on Mexico in terms of U.S. (consumer) prices? I was told (by the automakers) that, in their estimates, these vehicles would go up by $3,000 in the United States," Ebrard said, Border Report mentioned.

"The main impact of this measure is against the U.S. consumer and some of the principal automakers in the United States. That's why we say, 'It's a shot in the foot.'"

Mexico's finance minister pointed out that 25% tariffs could lead to the loss of at least 400,000 American jobs, explaining that this was because Detroit automakers relied on Mexican labor and manufacturing.

He also pointed out that the impact would worsen if Mexico imposed retaliatory tariffs on U.S. goods. His comments were part of Mexico's response to President-Elect Donald Trump's public threats.

Trump had said he would impose tariffs if Mexico doesn't take stronger action to reduce migration to the U.S. and stop fentanyl trafficking. Trump has also mentioned plans for tariffs on imports from Canada and China -- a 25% tariff on Ottawa and 10% on Beijing.

President Claudia Sheinbaum on Tuesday wrote a letter to Trump, rejecting his claims about drug trafficking and migrants, and explained that the proposed tariffs would harm both Mexico and the U.S.

The following day, she had met with a group of Mexican and U.S. business leaders who supported Mexico's stance. Some of them doubted whether Trump would go through with the tariffs once he takes office in January.

Gina Diez Barroso Azcarraga, president and CEO of Grupo Diarq said, "This policy – we don't know if it's policy or threat because we know how he handles himself – requires dialogue among the three countries. It is a partner they will not let go because it is not advantageous to do so."

Meanwhile, Sheinbaum said, "We don't believe it will happen. But, still, we have our plan."

Last week, the Mexican president revealed that the country will receive its citizens if Trump decides to go through with his plans for mass deportations, adding that migrants should not be considered "criminals."