Donald Trump on Monday pledged to impose a 25% tariff on all Mexican and Canadian exports to the United States on the first day of his second term as U.S. president, a move that President Claudia Sheinbaum said would be met with a reciprocal tariff on U.S. exports to Mexico.
Trump outlined his plan on his social media site Truth Social exactly three weeks after he made a similar promise on the eve of the United States presidential election.
“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” he wrote on Truth Social on Monday evening.
“Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open Border. On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump wrote.
The president-elect said that the tariff would remain in effect “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!” Trump said.
In a separate Truth Social post, the former president said that his administration would impose an additional 10% tariff “above any additional Tariffs” on Chinese imports until the Chinese government stops the flow of fentanyl and other drugs to the United States “mostly through Mexico.”
Imposing tariffs on Mexican and Canadian exports to the United States would violate the terms of the USMCA, but Trump — at least in his rhetoric — appears to have no qualms about breaching the free trade pact he signed during his first term as U.S. president.
The president-elect’s pledge to impose a 25% tariff on the United States’ biggest trade partners on his first day in office is a bold but unsurprising move. Whether he actually keeps his word is far from certain, considering his past conduct.
While president in 2019, Trump threatened to impose a 5% tariff on all goods from Mexico if the Mexican government didn’t do more to stem migration to the United States. The two countries subsequently reached a deal that averted the blanket tariffs and resulted in Mexico deploying federal security force members to both its southern and northern border.
At a 2022 rally in Ohio for then U.S. Senate hopeful and now vice president-elect J.D. Vance, Trump boasted that he succeeded in getting Mexico to act in the United States’ interests.
His latest tariff pledge, or threat, could be a similar ploy to pressure Mexico to crack down even further on the flow of migrants and drugs to the U.S. If the Mexican government were to deploy additional human and monetary resources to stem those flows, Trump could claim again that he succeeded in getting Mexico to do what he wanted.
Sheinbaum: ‘To one tariff, another will come in response’
On Tuesday morning, Sheinbaum gave no indication that Mexico would “fold,” as Trump claimed was the case in 2019.
At her regular daily press conference, the president told reporters she would send a letter to the president-elect “today.”
(Mario Jasso/Cuartoscuro)
Sheinbaum read out the entire letter, which in its penultimate paragraph said that a U.S. tariff on Mexican exports would be met with another tariff “in response.”
In her letter, the president also:
- Told Trump that Mexico has developed a “comprehensive policy” to attend to migrants who “cross our territory” en route to the United States. She told the president-elect that he “probably” isn’t aware of the efforts Mexico has made to stem migration to the U.S.
- Highlighted that “encounters” between United States authorities and migrants on the Mexico-U.S. border declined 75% between December 2023 and November 2024.
- Told Trump that Mexico and the United States need to jointly develop “another model of labor mobility” that responds to the U.S. need for workers and provides “attention to the causes that lead families to leave their places of origin.”
- Told Trump that if the United States allocated “a percentage” of what it spends on “war” to “the construction of peace and to development,” it would be able to substantially reduce migration.
- Pointed out that Mexican authorities have seized tonnes of drugs so far this year, confiscated more than 10,000 weapons and arrested over 15,000 people “for violence related to drug trafficking.”
- Highlighted that 70% of “illegal weapons” seized in Mexico come from the United States.
“We don’t produce the weapons, we don’t consume the synthetic drugs,” Sheinbaum wrote in her letter to Trump.
“The deaths due to crime that responds to the demand for drugs in your country, unfortunately, we are the ones who … [suffer] them,” she told the president-elect.
Sheinbaum told Trump that neither the migratory phenomenon nor drug use in the United States will be effectively dealt with through threats and tariffs.
“Cooperation and reciprocal understanding of these great challenges is needed. To one tariff another will come in response and that’s the way it will be until we place common companies at risk. Yes, common ones. For example, among the main exporters from Mexico to the United States are General Motors, Stellantis and Ford Motor Company, which arrived in Mexico 80 years ago,” she wrote.
!["The deaths due to crime that responds to the demand for drugs in your country, unfortunately, we are the ones who ... [suffer] them," Sheinbaum told the president-elect.](https://mexiconewsdaily.com/wp-content/uploads/2024/11/1007644_Conferencia-Matutina-Sheinbaum-8_impreso.jpg)
“I’m convinced that the economic strength of North America lies in maintaining our trade partnership. In that way, we can continue being more competitive against other economic blocs. I believe that dialogue is the best path for understanding, peace and prosperity in our nations. I hope that our teams can meet soon,” the president’s letter concluded.
The broader response to Trump’s latest tariff threat
Gerardo Fernández Noroña, president of the Senate:
“What tariffs should we put on … [U.S.] goods until they stop using drugs and illegally exporting weapons to our country?”
Ricardo Monreal, the ruling Morena party’s leader in the Chamber of Deputies:
“The imposition of a possible tariff on Mexican products goes against the USMCA and doesn’t resolve the common problems on the border between Mexico and the United States. We urge [the incoming Trump administration] to use the bilateral institutional mechanisms to combat the trafficking of people, drugs and weapons.”
“… This measure would cause severe damage to the economy and population of North America.”
Chrystia Freeland, deputy prime minister of Canada, and Dominic LeBlanc, Canadian minister of public safety:
“Canada and the United States have one of the strongest and closest relationships — particularly when it comes to trade and border security. Canada places the highest priority on border security and the integrity of our shared border.”
Diego Marroquín Bitar, North America scholar at the Wilson Center think tank:
Unilateral tariffs imposed by the U.S. on Mexico and Canada “would shatter confidence in USMCA and harm all three economies.”
The New York Times:
“The tariffs would … have serious implications for American industries, including auto manufacturers, farmers and food packagers, which busily ship parts, materials and finished goods across U.S. borders.”
By Mexico News Daily chief staff writer Peter Davies ([email protected])
HAHA can’t wait, you seem to forget that the USA can survive any tariff that Mexico wants to put on things, but Mexico can’t survive the opposite and also that Trump is planning on all monitoring of all the $$$$$ sent back to Mexico which last year alone was in the Billions of USD. I’m part of that, but it’s ok to me for whatever he does. 10 million illegals are in the USA through Mexico and Canada. Now tom Homan is on the scene and the shit show of dumbass joe biden and the jackal kamala harris is over. Send troops like Mexico did years ago to the southern and northern borders and it all goes away. Our laws matter as well, which states that it is ILLEGAL for anyone to enter the USA without a passport/visa.
“By 2040, immigration is expected to be the sole driver of U.S. population growth. Currently, 77% of the immigrants entering the country are working age (between 18 and 64). Evidence indicates that immigrants account for 19% of the U.S. labor force despite making up only 14.3% of the total population. This both strengthens the worker-to-beneficiary ratio and helps shore up Social Security’s payroll-tax base.” Certainly, there needs to be a plan to make it legal for foreign, non-residents to work in the US as the population growth in the US will not support Social Security or Medicare.
There were also over 100k known convicted felons, including over 13k rapists and over 10k murderers so I’m guessing that’s ok to stop all illegal immigration. Not to mention making Billions of dollars for the cartels as they continue to smuggle Chinese made fentanyl that kills over 100k Americans a year and all the sex and slave trafficking of children but yeah lets talk demographics.
I know; the suspense is killing me. The US and, by extension, the American consumer can weather and bear the tariffs more on Mexican imports than the reverse. Because what Mexico exports to the US is not primarily a staple for most Americans, the US can prolong and endure a trade war. The auto industry is the primary trade between the US and Mexico; Most people don’t consume autos daily or weekly. If you purchase a US car (or an Audi Q5) or that 75-inch TV, you should do it before January 21. I’ll bet Sheinbaum acquiesces long before Trump. Once the Peso gets to 22 and appears on a trajectory for 25, and then US FDI in Mexico gets paused, Sheinbaum will get pressured. If the US administration begins to threaten remittance tax, Sheinbaum will fold like a bad suit. The US has ALL the leverage, and all Sheinbaum can do is to write letters. They had better start formulating action plans. In reality, Sheinbaum will take action before the inauguration; mark my word. We are witnessing what professional-level, old-school, pre-WTO trade action looks like. That upper-level international trade class from the late 1980s is finally paying off—I’ll bet they don’t teach it anymore at Cal.
Maybe you should read the news. Mexico is the US’s largest trading partner and a huge amount of produce is imported from Mexico. 25% tariffs affect the US consumers not the exporters, so those ill-informed Trump supporters are going to be in for a nasty surprise. They thought food prices would go down under Trump, instead of up. And his party’s response to that? “Well maybe they should only eat food grown in the US!” Good luck to that when they want guacamole for their Super Bowl party.
James, you are ever so articulate in your naivety
On paper, the US is the worlds largest economy by GDP, but in reality, a lot of that ‘product’ is pencil pushing numbers through various financial firms. The US economy is more and more financial and bubble dependent, and less and less manufacturing. Tariffs are equivalent to a national sales tax on the citizens of the country that imposes them. They make sense only for short term goals of protecting domestic growers and manufacturers to catch up or retool. Tariffs will only add to the pain experienced by US consumers.
No doubt that a reciprocal tariff of US goods will hurt the Mexican consumer as well. On the other hand, Mexico has more trade options than before. The US, and boy-wonder Canada have been sanctioning just about every non NATO/G7 country on the planet. The effect of all of that righteousness has been to isolate the US in particular, but also Canada, Europe, Japan, Australia and NZ from the rest of the world, which has found or is quickly finding workarounds to western products and more importantly, to the USD $ and SWIFT settlements. Led by the BRICS+ group of nations, these workarounds have made it less important to be on good terms with the US and G7 countries and their self-serving “Rules-based International Order”. These growing economies would be happy to increase trade with Mexico.
Good trade relations among the North American countries makes sense and has fewer problems to solve than ocean crossing trade- particularly tourism. Mexico could surely benefit from more trade with the US and Canada, and be hurt, at least short term, by trade sanctions and tariffs. But those countries, should the world survive through the end of 2025, may end up needing Mexico more than Mexico needs them. The times they are a changin’.
I was so VERY impressed with Presidenta Sheinbaum’s letter! The six bullet points in the article (from the letter) were right on, well expressed and made the point! After that her comment about dialogue is the best path for understanding, peace and prosperity in our nations was the icing on the cake. It’s a shame it is probably too far above Trump’s intellectual level to have the desired result! I sent that letter to my 7 grandchildren and 2 sons with a side note: “The world needs more leaders like Sheinbaum”!
I agree with you 100%. I am so proud of our Presidente. Unfortunately, she is going to have problems dealing with Trump and his inability to comprehend anything over a 4th or 5th grade level.
Yup, there will be hard times ahead for her and the nation. Certainly a huge personality clash…
All of the UAW members who voted for President Trump may be in for a rude awakening!
How so? The UAW doesn’t directly represent Mexican auto workers. This could be a hidden boon for the American auto industry since its sales are in the toilet. Look at the sales volume for GM, Ford, and Stellantis. While volumes have decreased, prices remain high. Now, many producers have incentivized with 0% financing. Do you think all those guys who shelled out $80-100K on new trucks over the last couple of years are going to be concerned over this—not even. Plenty of buyers won’t even think twice about shelling out $100k (pre-tariff) on a new truck assembled in Mexico when the financing is 0%.
Mexico has a large army, navy, and air force; yet, they do little to dismantle the drug cartels. Corruption in Mexico is like a course that they teach in schools. Things will never change here until Corruption and Cartels no longer are a part of daily life in this beautiful country.
And cartels wouldn’t have power if they didn’t have
the US clientele.
. . . AND all that money being paid by NGOs??? or sadly the “dreamers” for a better life than the life they are departing . . . President Sheinbaum needs to look “under her hood” so to speak to address the wide spread acceptance of her citizenship that Mexico & its government ARE CORRUPT, have been corrupt, and on its current trajectory WILL CONTINUE TO BE CORRUPT . . . “change the oil Claudia, it’s long past due . . .”
I love it! Fight back against the bully. This is one female that knows how to stand up to Trumpy. All Trumpys hot air is just bluffy fluff as the reality is do much deeper than he is capable of digesting. The entire auto industry hasn’t said much yet, but you can imagine what they are thinking. Both American, Canadian and Mexican jobs are at stake at a minimum. And, the American consumer will lose out. Prices will go up and inflation will increase and MAGA will be pissed! You need to think much deeper if you think you are going to stop the cartels and that is before we get into the damage that his immigration policy will create. Don’t back down Scheinbaum…call his bluff.
Ross Perot called your bluff decades ago “Alexis” . . . it’s that loud “sucking” sound that you seem to enjoy . . .
Agree 100%. We cannot let him succeed in destroying the livelihoods of all the citizens of Mexico, the U.S., and Canada to satisfy his need for vengeance and his narcissistic greed for power and money.
Ross Perot . . . “Well, everybody’s nibbling around the edges. Let’s go to the center of the bull’s-eye, the core problem. And believe me, everybody on the factory floor all over this country knows it. You implement that NAFTA, the Mexican trade agreement, where they pay people a dollar an hour, have no health care, no retirement, no pollution controls, et cetera, et cetera, et cetera, and you’re going to hear a giant sucking sound of jobs being pulled out of this country right at a time when we need the tax base to pay the debt and pay down the interest on the debt and get our house back in order.” (In a 1992 presidential debate.)
Thank you President Sheinbaum for standing up to the bully NOTB. My husband and I are Permanent Residents in Mexico and we are beyond thankful to have been welcomed so warmly by the Mexican people when we moved here in 2018. We are horrified by the outcome of the US election and the damage his policies could wreak on all of North America and beyond. Trump will sow chaos and destruction wherever he can, and we all need to fight back however we can to stop him. Thank you for your leadership President Sheinbaum. Many of us from the U.S. who live in Mexico stand with you and will do whatever we can to help push back on his disastrous policies, which, if not challenged, will destroy all 3 of our North American countries.
. . . did you vote in the US election in 1992 ??? sounds like Ross Perot has your number . . .
“Well, everybody’s nibbling around the edges. Let’s go to the center of the bull’s-eye, the core problem. And believe me, everybody on the factory floor all over this country knows it. You implement that NAFTA, the Mexican trade agreement, where they pay people a dollar an hour, have no health care, no retirement, no pollution controls, et cetera, et cetera, et cetera, and you’re going to hear a giant sucking sound of jobs being pulled out of this country right at a time when we need the tax base to pay the debt and pay down the interest on the debt and get our house back in order.” (In a 1992 presidential debate.)
Mexico need to stop the invaders from coming thru their southern border!
Who thinks that tariffs will lead to lower prices in the US? Please send them my way as I have a bridge I need to sell….
I wish She could be half as belligerent with the Cartels , as She is with Mr Trump, please Mrs President stop playing with fire it’s way to dangerous !!
Precisely! I would enjoy reading the letter she sent to the CJNG. Unfortunately, I don’t think she has the fortitude to make a stand with the cartels—evidence of who is really in control.
Every day I am so grateful to Mexico for allowing me to become a citizen. I constantly praise our recent leaders for their common sense and incredible support of this country and its people. The drug problem in the U.S. is 100% caused by the tremendous number of Americans who demand drugs. Without this DEMAND, there would be no SUPPLY. Stop blaming Mexico for a problem the U.S. created and doesn’t solve.
Trump is a blow-hard. Wait him out. He huffs and puffs and then shows how weak he is and always has been. He will back down and the world will continue to laugh at what the US has become.
Do not underestimate our new Presidente, she communicates accurately and will get things done for the sovereign country of Mexico. This was a thoughtful and thorough response to a Blow Hard with nothing but innuendo to support his rhetoric that is merely designed for the least among the US to have someone below them to focus on and avoid seeing the usual GOP business of enhancing the wealthy over the needs of their base. Smoke and Mirrors is Trump. Facts, reason, and logic are Clauida