Mexico reveals that Trump’s tariffs could generate mass unemployment and sends a message

The President of Mexico, Claudia Sheinbaum, announced that Mexico will adopt retaliatory measures if the President-elect of the United States, Donald Trump, carries out his proposal to impose a 25% tariff on all Mexican imports.

In a press conference held this Wednesday, 27th, Sheinbaum highlighted that the implementation of such tariffs by the US government would provoke similar responses from Mexico, its main trading partner.

During the press conference, which was also attended by Mexico’s Economy Minister, Marcelo Ebrard, the possible economic consequences of this measure were discussed.

Ebrard criticized Trump’s proposal, which he said would violate the USMCA (T-MEC in Spanish) trade agreement, a pact between Mexico, Canada and the United States. “The impact on companies will be enormous,” he said, pointing particularly to the automotive sector as one of the most affected.

Ebrard noted that popular vehicles in the U.S., such as pickup trucks made in Mexico, could see an average price increase of $3,000. This increase would mainly affect consumers in rural areas of the United States, a significant support base for Trump during the election.

The dialogue between Sheinbaum and Trump continued with a telephone call where topics such as migration and drug trafficking were discussed. Although Trump stated on his Truth Social platform that Sheinbaum had agreed to “close the southern border”, the Mexican president denied this statement in a publication on the X network, highlighting that Mexico would continue implementing its own migration strategy and reaffirming the intention of “ build bridges, not close borders.”

The Mexican peso appreciated by almost 1% against the dollar after Sheinbaum’s statements, indicating a positive reaction from the financial market to his words.

The review of the USMCA, scheduled for 2026, was also a topic covered. Katia Goya, economist at Grupo Financiero Banorte, warned of the risks of a trade conflict that could lead to a complete renegotiation of the agreement. “Situations of trade conflict generate lower economic growth, higher unemployment and higher inflation in the United States”, he analyzed.

Ebrard concluded the press conference by reiterating Mexico’s preference for cooperation and regional integration as opposed to the divisions generated by tariffs. Sheinbaum and Ebrard’s firm positions reflect the Mexican government’s stance in the face of a scenario of economic tension that could affect economic stability in North America.