The President of the United States, Donald Trump, reaffirmed his stance on the imposition of tariffs on Mexico and Canada, stating that the measure will be implemented as planned. Although he initially agreed to a one-month postponement to allow negotiations with both countries, the deadline expires on March 4.
During a joint conference with his French counterpart Emmanuel Macron, Trump emphasized that his administration is marking a “sharp break” with traditional U.S. foreign policy. He argued that his government has had to confront what he considered a “very foolish foreign policy establishment” and defended his decision to implement tariffs as a strategy to regain the country’s economic sovereignty.
How will tariffs impact Mexico’s economy?
The announcement of a 25% tariff on all Mexican and Canadian imports has raised concerns within the government of Mexican President Claudia Sheinbaum. The president expressed confidence that agreements could be reached before March 4 to avoid the economic impact of this measure.
In her morning conference on Monday, February 24, Sheinbaum stated that Marcelo Ebrard, Secretary of Economy, is leading negotiations with U.S. officials. “A team from the Ministry of Economy will remain in Washington, accompanied by representatives from the Ministry of Finance, to seek agreements with the U.S. Department of Commerce,” the president declared.
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Additionally, Mexico has reinforced security at its border by deploying 10,000 members of the National Guard. This action aims to respond to Trump’s demands regarding the fight against fentanyl trafficking and illegal migration, which are the main arguments the U.S. president has used to justify the implementation of tariffs.
For his part, Trump insisted that the United States has been a victim of “disastrous” trade agreements and that imposing tariffs aims to reverse that situation. “Many countries have taken advantage of the United States, but I don’t blame them—I blame the Biden administration,” he stated.
The president also announced that his administration plans to establish a system of reciprocal tariffs, meaning that taxes on foreign products would be aligned with the tariffs and trade barriers imposed on U.S. products abroad. “Our country will once again be extremely wealthy,” Trump assured.
What will be the economic consequences of the tariffs?
The imposition of tariffs could significantly impact the Mexican economy. According to data from the Bank of Mexico, the exchange rate surged following Trump’s announcement, closing at 20.46 pesos per dollar. Analysts warn that if the 25% tariff is applied to all Mexican exports, the dollar could reach up to 24 pesos, with a GDP contraction of 2% in 2025.
Meanwhile, the U.S. government has also pledged to combat arms trafficking to Mexico, arguing that this issue has strengthened drug cartels. In response, Sheinbaum has emphasized that tackling arms trafficking is essential for Mexico’s security.
What other tariffs is Trump preparing?
The threat of new tariffs is not limited to general imports. Starting in April, the United States will impose a 25% tariff on steel and aluminum exports from Mexico, arguing that the Latin American country is relabeling metals from China and Russia to evade trade restrictions.
“Mexican producers are using unfair trade practices to gain market share in the United States,” states a document from the U.S. Federal Register.
However, Sheinbaum has rejected these claims and assured that Mexico buys more steel and aluminum from the U.S. than it exports. Data from the Ministry of Economy indicates that the U.S. has a $6.897 billion trade surplus in these metals with Mexico.
