President Claudia Sheinbaum suggested that Mexico could impose retaliatory tariffs that her U.S. counterpart, Donald Trump, announced he would set against Mexico on his first day in office.
On Monday, Trump anticipated that he would set a tariff of 25% on all imports from both Mexico and Canada, because both nations have not taken sufficient measures, according to him, to help fight drug trafficking and immigration in the United States.
Sheinbaum suggested Tuesday that Mexico would respond with countervailing or retaliatory measures, putting the Mexican and U.S. economies at risk of inflation and job losses.
Also, the Mexican President said that between the two countries “cooperation and reciprocal understanding” is required.
Retaliatory tariffs
The USMCA requires comprehensive reviews every six years. It also mandates specific reviews every six months on labor and environmental issues. Additionally, ongoing reviews take place through a dozen committees covering various topics.
The first comprehensive review of the USMCA since its implementation in July 2000 is scheduled for 2026. However, the process will begin in 2025. By October 2025, the Trump administration must follow U.S. law by conducting consultations, issuing public notices, and gathering comments related to the review.
Expanding the scope of the review could open a “pandora’s box”. Certain U.S. stakeholders are interested in including changes related to agricultural, labor, investment and trade issues with China.
In contrast, stakeholders in Mexico and Canada are interested in issues such as labor, compliance mechanisms, energy and environmental issues, and agricultural disputes.
Talion law
Sheinbaum warned, as part of a letter she sent to Trump this Tuesday, “To one tariff, another will come in response and so on until we put common businesses at risk. Yes, common. For example, the main exporters from Mexico to the United States are General Motors, Stellantis and Ford Motor Company, which came to Mexico 80 years ago. Why put a tax on them that puts them at risk? It is not acceptable and it would cause inflation and job losses for the United States and Mexico.