The worst was expected in Mexico – and it has occurred: US tariffs of 25 percent on goods from southern neighboring country are in force. What are the consequences and the reactions?
North America is no longer a free trade zone overnight. For the three countries Canada, Mexico and the USA, an era of uncertainty has started – with unforeseeable consequences in the markets. Warren Buffett, one of the most renowned US investors, calls Trump’s tariffs a “warlike act”.
Mexico’s President Claudia Sheinbaum reacts – at least externally – calmly, but determined: “We will continue to find dialogue to find alternatives with arguments and reason.” It is time to defend Mexico and his independence, in peace and with a cool head.
“Nobody wins with this decision”
“This one -sided decision by the United States makes our economy and our people, but also consumers in the north,” continued Sheinbaum. “We will react with counter -tariffs and other measures.” She announced that the countermeasures on Sunday on the main square of Mexico City.
“This should not promote a trade war, on the contrary,” added Mexico’s President. “Our economies have to interlink even more to be prepared against the spread of other regions. Nobody wins with this decision.”
Many Trump claims are already fulfilled
Sheinbaum’s government had met many demands from US President Donald Trump in recent weeks: soldiers sent to the border to stop migrants. 29 drug dealers delivered, successful raids carried out against organized crimes, and as many drugs than ever confiscated. The trade with China was slowed down.
The US President has appreciated these efforts, but then signed the executive orders: 25 percent tariffs to almost all imports from Mexico.
“Serious economic Effects”
Economist Gerardo Esquivel, former Vice President of the Mexican National Bank, clearly names the consequences for his country. “In Mexico we will feel this very directly, especially in the export sector and in the regions that depend significantly on relationships with the United States,” says the economist.
“This means that value chains are interrupted immediately,” said Esquivel. “The demand for our products will decrease – with serious economic effects, especially if the tariffs stay longer.”
Risk of recession
Growth, employment and income would go back, said Esquivel: “And that in our already difficult economic situation. This can plunge the Mexican economy into a recession.”
Hope still lives in Mexico: that Trump’s customs shock will not last long. After all, Canada, the USA and Mexico have been allied in a free trade zone for over 30 years. It was reformed in 2018. The then US President described this new agreement as the best ever closed. His name: Donald Trump.
