Marcelo Ebrard warned that Mexico would retaliate if US President-elect Donald Trump decided to apply a generalized 25% tariff on imports of Mexican products. Ebrard said that such a measure would strongly impact inflation and the US economy, given that Mexico is its main trading partner, and acknowledged that there is a possibility that Trump would actually carry out that decision.
“If you apply a 25% tariff to me, I have to react with tariffs and I am your main importer, along with Canada,” the official said.
Last week, Donald Trump promised to establish a 25% tariff — and even up to 100% — on all Mexican imports if President Claudia Sheinbaum does not stop what she described as an “avalanche of criminals and drugs” to the United States.
During his recent campaign, Donald Trump stated that Mexico is allowing Chinese investments in the automotive sector, which he believes could threaten American jobs. In February, Nikkei reported that the Chinese company BYD began a feasibility study to build an automotive plant in Mexico, with a possible generation of up to 10,000 jobs; however, a final decision has not yet been made.
Marcelo Ebrard, Secretary of Economy, pointed out that there is only one vehicle plant in North America owned by BYD, and it is located in the United States, from where vehicles are exported to Mexico and other markets.
It should be noted that, although the United States Constitution grants Congress the authority to establish tariffs, this power has been partially delegated to the President. In addition, the United States is a member of the World Trade Organization (WTO) and participates in trade agreements that include specific tariff commitments.
