Sheinbaum Warns of Impact From Trump’s Proposed Tariffs

Claudia Sheinbaum responded to US President-elect Donald Trump's announcement of a 25% tariff on imports from Mexico and Canada, set to take effect when his administration begins. In a letter she intends to send to Trump, Sheinbaum emphasized the importance of mutual cooperation and cautioned that such measures could lead to inflation and job losses in both countries.

The letter follows Trump’s statement about imposing a 25% tariff to all products unless both countries take significant action on drugs and migration. "On Jan. 20, one of my first executive actions will be to sign documents imposing a 25% tariff on all products coming into the United States from Mexico and Canada due to their open-border policies," Trump stated. The announcement led to a 1% rise in the US dollar against the Canadian dollar and a 2% increase against the Mexican peso.

Sheinbaum responded by asserting that tariffs and threats are not the solution to the migration or drug consumption issues in the United States. Instead, she emphasized that cooperation and mutual understanding are essential. “Even with tariffs, countermeasures will follow, ultimately jeopardizing the interests of shared businesses,” Sheinbaum stated.

She also highlighted Mexico's progress in migration management, noting that new policies had reduced encounters at the border by 75% from December 2023 to November 2024, according to US Customs and Border Protection (CBP) statistics. "Interestingly, half of the individuals arriving are doing so through legally granted appointments under the US CBP One program. This has effectively eliminated migrant caravans at the border. However, we must collaborate to establish a more efficient labor mobility model, which is essential for the United States, while also addressing the root causes that drive families to leave their home countries," she added.

Regarding fentanyl trafficking, Sheinbaum highlighted that, as of 2024, the government has confiscated over 10,340 firearms and arrested 15,640 individuals connected to drug trafficking. She also mentioned a proposed constitutional reform that would classify the production, distribution, and sale of fentanyl and other synthetic drugs as serious criminal offenses.

Inu Manak, Trade Policy Fellow, Council on Foreign Relations, stated that Trump used tariffs as a tool in his trade war against China and even against US allies, a strategy he is likely to replicate during his next term. Manak added that Trump would likely be able to impose these tariffs without the need for Congressional approval. However, not all tariffs will be implemented immediately; some may be introduced gradually to secure trade concessions. "We would expect that within a few months of him taking office, the first tranche of tariffs will begin to take effect," Manak noted.