Mexico has warned that Donald Trump’s proposed tariffs on the country could cost 400,000 US jobs, as well as increase prices for American consumers. In a news conference on Wednesday, Mexican President Claudia Sheinbaum said her government would respond swiftly to any tariffs imposed by Trump.
Sheinbaum stated that if there are US tariffs, Mexico would also raise its own tariffs, and warned of the “huge” cost to US workers, citing a study that estimated around 400,000 jobs in the US would be lost. Economy Minister Marcelo Ebrard also expressed concern, saying the impact would extend beyond workers to consumers.
The proposed tariffs, which would apply to Mexico, Canada, and China, have been met with skepticism by economists, who argue they could harm the US manufacturing industry. Trump’s team has defended the plan, claiming it would protect US manufacturers and workers from “unfair practices” of foreign companies and markets.
However, officials in Mexico and Canada are urging caution, warning that the tariffs could be illegal under the free trade agreement between the US, Mexico, and Canada. The USMCA prohibits most duties on trade between the three countries, making it unclear whether Trump’s proposed tariffs would stand.
As tensions rise, analysts warn of a potential regional trade war, with some estimating the impact of the proposed tariffs “could wipe out effectively all profits” from major automakers that manufacture in Mexico.
Source: https://www.aljazeera.com/news/2024/11/27/mexico-warns-trump-proposed-tariffs-to-cost-400000-us-jobs