Mexican president warns Trump tariff threat ‘would lead to inflation and job losses’ for both countries

Mexican President Claudia Sheinbaum responded to the threat of tariffs from President-elect Donald Trump by warning that a trade war would lead to higher inflation and job losses for both countries.

Trump on Monday said that he would issue tariffs on Mexico and Canada over their lack of effort in stopping illegal immigration as well as illicit drugs being smuggled into the U.S.

‘Such a measure would be unacceptable and would lead to inflation and job losses.’

On Tuesday, the recently elected president of Mexico responded in a letter to Trump.

“You may not be aware that Mexico has developed a comprehensive policy to assist migrants from different parts of the world who cross our territory en route to the southern border of the United States,” wrote Sheinbaum.

She went on to say that the program had led to a 75% decrease in encounters at the border between Dec. 2023 and Nov. 2024, based on data from U.S. Customs and Border Protection.

“For these reasons, migrant caravans no longer arrive at the border,” Sheinbaum continued.

“Among Mexico’s main exporters to the United States are General Motors, Stellantis, and Ford Motor Company, which arrived in Mexico 80 years ago,” she wrote. “Why impose a tariff that would jeopardize them? Such a measure would be unacceptable and would lead to inflation and job losses in both the United States and Mexico.”

Sheinbaum also addressed Trump’s accusation that Mexico was not doing enough to thwart drug smuggling into the U.S. by accusing the U.S. of not doing enough to stop illegal gun smuggling into Mexico.

“If even a small percentage of what the United States allocates to war were instead dedicated to building peace and fostering development, it would address the underlying causes of human mobility,” she wrote.

Trump has also threatened to slap China with a 10% tariff over fentanyl being transported from the communist country into the U.S. while he said Canada and Mexico would face a 25% tariff on goods.

“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” wrote Trump.

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