Mexico says it will impose retaliatory tariffs on US with details coming Sunday

U.S. Court News

Mexico’s president said Tuesday the country will respond to the 25% tariffs imposed by the United States with retaliatory tariffs on U.S. goods, with details to come.

Mexico will announce the targeted products and other measures Sunday at an event in Mexico City’s central plaza, a delay that suggests Mexico hopes to de-escalate the trade war set off by U.S. President Donald Trump.

President Claudia Sheinbaum said the government is “going to wait” because she had planted to speak to Trump this week. Mexico’s government has said since January it had a plan ready for this scenario.

“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum added.

China and Canada responded immediately with measures Tuesday.

Hours later, after stock markets took a hit, U.S. Secretary of Commerce Howard Lutnick said in a video posted to X that he was on the phone “all day” with Mexican and Canadian authorities.

“It’s not going to be a pause. None of that pause stuff,” he said. “Somewhere in the middle will likely be the outcome.”

Some 80% of Mexico’s exports go to the United States, part of more than $800 billion in trade between the countries last year.

Sheinbaum called “offensive, defamatory and without support” the White House allegations that Mexican drug traffickers persist because of “an intolerable relationship” with the Mexican government. Trump has said he’s targeting Mexico to force it to crack down on migrants and drugs entering the U.S.

She listed the achievements of her young administration against Mexico’s drug cartels, including seizing more than a ton of fentanyl and dismantling 329 methamphetamine labs. She also noted that Mexico sent the U.S. 29 drug cartel figures it requested last week.

“It’s inconceivable that they don’t think about the damage this is going to cause to United States citizens and businesses,” Sheinbaum said. “No one wins with this decision.”

Mexico’s president also noted that Trump on Monday said he respected her, and she said she respected him as well: “The thing is finding a way to collaborate, of coordinating without subordinating anyone for the benefit of our people.”

Trade experts expressed doubt over how long Trump’s tariffs would last, saying they would boost prices for American consumers including Trump’s base.

“It is going to do nothing to help with the food inflation in the U.S.,” said Timothy Wise, an expert on agricultural trade between Mexico and the U.S. “I don’t see it as sustainable. I don’t find it plausible that corporate folks who surround Trump are going to sit back and allow him to destroy their foreign markets.”

Gabriela Siller, economic analyst with Mexican financial group Banco Base, said in the short term, the tariffs could boost inflation, disrupt economic trade flows and slow economic growth for both countries.

But as she watched the gradually falling Mexican peso, she also noted “the exchange rate and volatility have not skyrocketed, as the market speculates that the U.S. government could withdraw the tariffs soon.”

Mexico has the most to potentially lose in a trade war with the U.S., and economists say extended tariffs would plunge Mexico’s economy into a recession.

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