Mexican President Confident in Avoiding Trade War with the U.S.
Mexican President Claudia Sheinbaum expressed optimism on Thursday regarding the potential for avoiding a trade war with the United States. This statement followed her recent phone conversation with U.S. President-elect Donald Trump, who had previously threatened to impose tariffs on goods from Mexico, Canada, and China upon taking office. During a news conference, Sheinbaum stated, "There is no potential tariff war," although she did not provide specifics on how this would be achieved.
Trump’s Tariff Threats and Immigration Discussions
In the same week, Trump reiterated his plans to impose a 25% tariff on all goods from Mexico and Canada, citing concerns over drug trafficking and illegal immigration. He claimed that Sheinbaum had agreed to take measures to stop immigration through Mexico, which he described as an effective closure of the southern border. Sheinbaum, however, clarified that the discussion focused on Mexico's management of migration issues and strengthening security cooperation, emphasizing the importance of sovereignty in these matters.
Economic Implications and Future Relations
The prospect of tariffs has raised concerns about the impact on U.S.-Mexico relations, particularly given that Mexico accounted for 15.9% of U.S. trade in the first nine months of 2024. Mexican Economy Minister Marcelo Ebrard expressed skepticism about the likelihood of tariffs being imposed, suggesting that such actions would be detrimental to both economies. Following Sheinbaum's comments, the Mexican peso experienced a nearly 1% increase, indicating market optimism amidst ongoing uncertainty regarding U.S. trade policies.
