The American Society of Mexico (Amsoc), a community organization focused on bilateral development, said on Wednesday that “Mexico has the most to lose” if a trade war begins with the U.S.
“Both Mexican and American businessmen do not benefit from any type of action by either the Mexican government or the American government, but I think it is very important that instead of escalating the situation, a common understanding is sought,” Amsoc President Larry Rubin told the media outlet El Financiero.
Amsoc’s claim follows U.S. President-elect Donald Trump’s pledge this week to impose a 25% tariff on all Mexican and Canadian exports to the United States upon assuming office on Jan. 20.
Trump cited illegal migration and the “flow of fentanyl and other drugs” via Mexico for the decision to impose the tariff on Mexico.
President Claudia Sheinbaum implied on Tuesday that any U.S. tariffs would be met with reciprocal measures on U.S. exports to Mexico and warned that such a scenario would hurt U.S. companies doing business in Mexico.
“Cooperation and reciprocal understanding of these great challenges is needed. To one tariff another will come in response…until we place common companies at risk,” Sheinbaum said in a letter addressed to Trump, which she read out during her morning press conference on Tuesday.
“I believe that dialogue is the best path for understanding, peace and prosperity in our nations. I hope that our teams can meet soon,” she concluded.
Response by Mexico’s private sector
Several private-sector representatives have responded to Trump’s call for tariffs on its North American neighbors, with many stressing the importance of the continuity of the USMCA free trade agreement between the U.S., Mexico and Canada.
“We have to learn to negotiate and talk with our North American suppliers,” President of the National Association of Importers and Exporters of the Mexican Republic (ANIERM) Gerardo Tajonar Castro told El Financiero. “The type of trade war that could arise does not suit us because there would be retaliation from Mexico…”
Meanwhile, Mexico City Chamber of Commerce, Services and Tourism (Canaco) President José de Jesús Rodríguez told attendees of the Canaco Forum that Mexico is the United States’ main commercial partner, “and they [the U.S.] cannot hang themselves.”
“And the problem between China and the United States, which is geopolitical, [is] very complicated,” de Jesús added.
He appealed for calm. “The only alternative they have is Mexico; we are their main supplier, so let’s not lose sight of that,” he said.
Other experts also pointed to the highly intertwined trade relationship between the U.S., Canada and Mexico.
“Trump’s bet is risky since the U.S. economy depends enormously on the Mexican and Canadian markets for its exports, as well as on the inputs from these countries for its industrial production. It is a shot in the foot,” Kenneth Smith Ramos, a former negotiator of the USMCA, told El Financiero.
With 53 days left until Trump takes office, it is unclear if the threat to levy the tariffs is serious or not, or whether the move is an attempt to score an early political win in the ongoing dispute over the U.S.-Mexico border.
Despite President Sheinbaum’s implied threats on Tuesday about imposing retaliatory tariffs on U.S. goods she has not given any specifics about how Mexico would respond.
With reports from El Financiero
The peso will devalue enough regardless of tariffs to maintain importer price stability and US market share. The tariffs will be inflationary, but for the Mexican poor and middle class. Shienbaum has to talk tough for domestic political reasons but ultimately with 80% of Mexico’s exports going to the US, it’s Trump who has the buying power and leverage.
Cooperation?? What cooperation?? Mexico doesn’t want to deal with the Cartels and they say they’re cooperating?? With friends like that , we’re doomed, wake up Mrs Presidenta and smell the coffee!!
The cartels exist to SUPPLY the enormous DEMAND by Americans for illegal drugs. STOP the demand and there will be no SUPPLY and no cartels. The problem is 100% created by the U.S. Americans should stop blaming Mexico and deal with drug addiction.
I agree. The US needs to institute stiffer penalities for those using fentenayl and other hard drugs. But the Mexican cartels do not exist just to supply the American drug addict with drugs. The cartels extort Mexican businesses, have a large gas blackmarket operation, among many other illegal activities. Even if Americans stopped using drugs, the cartels would still exist and perhaps become even more dangeous within the borders of Mexico.
Both sides are to blame, not just one.
Yes and quit exporting weapons to the cartels.
You definately do not understand hard core drug addiction. Drugs produced and manufactured in MEXICO is annINTERNATIONAL PROBLEM
I agree with you, they are afarid to do anything with the Cartels, they would lose money.
Trump and MAGA are determined to blowup the world order that has existed since the end of WWII. This is one of the many bad ideas they will execute over the next several years. What they say they will do, they will. What the consequences are, are also clear in the short term. But what happens to a world left without American leadership in Democracy and Human Rights is what we will learn together over the next two decades. These are the consequences when there are more Unenlightened voters than Enlightened ones and where an equal number don’t participate. But I’m optimistic for Mexico. What is made here can, theoretically, be directed to other markets and I would rather bet on Mexico than any other country right now (fingers crossed)
Waaa
Agreed. I’m an American who has lived in MX for 17 years. I can’t believe what is happening in the USA. I wish I had a little button with picture of trump with a line drawn through it to wear out in public so no Mexican thinks I support this insanity in the USA. Mis amigos ya saben.
Thank you for your comments. So very true and sad!
Aunque vivo en Estados Unidos, estoy de acuerdo con Bradford Burns. En los próximos días, le corresponderá a México dar al mundo un modelo ejemplar de democracia en América.
This is all very simple. Comply with doing all Mexico can to HALT drugs, Cartels and people attempting to cross the Mexico border…Mexico, get serious. USA is serious and is willing to lose to win.
In addition, Trump has set up his team to deal with the drug issues in the USA and they are serious. US needs to reduce demand.
Yes, that is the part that nobody is talking about. WHY is there so much demand for these painkillers which by now are known to be lethal. Many young people can’t cope. They don’t learn anything from their families like the Mexican kids do. Their parents are too busy for them.
What are you talking about. Trump and Congress have done nothing to reduce drug consumption in the USA. Not to mention, the NRA and gun manufacturers in the USA are rolling in the money with guns crossing into MX. Maybe the USA should gain a little humility in its dealings with Mexico? Treat and respect Mexico as an equal? Why is that asking to much. I’m sorry to say that the USA has completely lost its exceptionalism in the world. Most other countries, including MX, have been down this trumpian path in their past.
Well, once again a bunch of “experts” providing nothing but generalities with no specifics on how Trump’s tariffs and a tariff war will Mexico will harm the Mexican people and economy much more than in the U.S.
The cost of the tariffs are borne by the people in both countries, who will be paying more for the staples they depend on. Mexico exports a very large percentage of the fruits and vegetables found in U.S. supermarkets. Prices are gonna certainly increase appropriately.
Mexican factories manufacturing vehicle parts and components, as well as whole goods, are supplying the U.S. brand names in their factories and showrooms for U.S. domestic customers.
GM, Ford, and even Elon’s Tesla vehicles are manufactured in Mexico for export to the U.S. market.
When Trump imposted his mega tariff on China during his term, at least two Chinese factories in the U.S. making the same products simply raised their prices to match the imports just to increase profits.
All of these and other stories with the numbers appeared in MSD and other news outlets.
Someone tell your President Sheinbaum that Mexico economic is going to lose “BIG”, more than the United States. Sheinbaum is “SO STUBBURN’ and she can’t see the damage to be done. What is wrong with her?
All Mexican produced cars, trucks, tractors and etc. manufactured in Mexico are going to see the 25% tariff, bt trunp, He made that “promise” to the American people, and He is a type of person, who keeps his promise. So Mexico, be ready for the change, come “HELL or HIGH WATER” (mark my word).
The Cartel needs to “peddle drugs” to exist and make “billions of dollars. The problem is the Mexican government lost the cobtrol of this “bad situation” beginning with President Carlos De Gortari and all the following president thereafter who were being paid by the Cartel. Mexican Citizens DONT BE SO “STUPID AND DUMB” TO BELIEVE OTHERWEISE.
Be clear about Trump. He is the embarrassment of the USA. He is a convicted felon, a declared rapist by civil court, according to Google 26 women have filed sexual assault charges against him, he is a racist, more Scandanavian lily-whites while discriminating against people of color immigrants (Mostly Mexicans), an insurrectionist who has given pardons to those convicted of crimes. Trump declares he wants to be a dictator for a day, or shall we say forever since once the constitution is violated, there goes any semblance of order and balance from the courts. Needless to say, he has his dirty hands on women’s reproductive health. He is gross and vile in both his public speech and actions. That is who Trump is to the world.
OPTIMA, do you mean like the promise he made repeatedly that Mexico would pay for the wall? I think he’s bluffing. However, if he is not, he will quickly see how much his constituents who voted for him over the price of eggs and gas will be furious about paying 25% more for Mexican and Canadian imports (which includes much more than just vehicles). I guess he missed that tariff part of economics 101, which I learned in high school.
And no, Tesla’s plant is not producing cars here yet. The construction of the plant is on hold due to this blustering. However, John Deere is not wavering, nor are many Chinese companies coming to Mexico to produce their products.
What do you propose Sheinbaum or any president of any country do with cartels? Are you aware of how many politicans have been killed by them in Mexico? Is it worth her life? I await your brilliant response.
Sheinbaum knows full well she is TRAPPED between a rock and a hard place.
Comments about “oh the USA stands to lose blah blah,” NONSENSE! As someone pointed out Trump is more than willing to lose to win – he’s not effing around.
And yet Sheinbaum can’t and won’t do anything to interfer with her bosses (the cartels).
She’ll do an optic dance of stemming migrants, etc as window dressing with the hope that her machinations give Trump the political win in the states – which is all he really wants.
On economic terms, in 2023, Mexico’s GDP was $1.8 trillion vs the US +$22 trillion. While a trade war is not good for either, does Mexico want to take on the US. The cartels have been around for a long time but last and current Mexican administrations have done nothing to address the issues; the violence, the drugs, and their role in the immigration crisis. In fact, it’s been reported that Amlo benefited from financial support from the cartels. In a country that requires that you present financial proof of self sufficiency in order to get a permanent resident visa,
how is it possible that Mexico’s southern border is so porous. Could it be that the government’s blindness protects the cartel’s business.
Why do people not understand that the tariffs that Trump will be imposing will be paid by the tax taxpayers of the United States of America. Mexico will not be paying the tariffs. Stupid is stupid!
And fELON is felon.
Stop perpetuating caveman linguistics. Both sides of the border are in America.