Economic reports or analyses from trade organizations or financial institutions

Sheinbaum Rejects Trump's Tariff Threats, Denies Closing Border Agreement

Nov 28, 2024, 01:40 AM

Mexican President Claudia Sheinbaum has responded to U.S. President-elect Donald Trump's threat to impose a 25% tariff on Mexican imports by warning that such measures would harm both nations' economies. In a letter addressed to Trump following his announcement on November 25, Sheinbaum emphasized that increasing tariffs could lead to inflation and job losses in both countries and could trigger retaliatory actions, stating, "A tariff will be met with another in response." She stressed the importance of dialogue and cooperation, asserting that "It is not with threats nor tariffs that topics such as migration must be confronted." After a phone conversation between the two leaders, Trump claimed that Sheinbaum agreed to stop migration through Mexico into the United States, effectively closing the southern border. However, Sheinbaum refuted this, stating, "We do not close borders; we build bridges between governments and peoples." The Mexican Foreign Minister, Juan Ramón de la Fuente, is in contact with Trump's team to coordinate a meeting to discuss key issues such as migration and bilateral relations.