The new tariffs proposed by President-elect Donald Trump for countries like Mexico and Canada will lead to the loss of 400,000 jobs in the United States.
The alarm was raised by Mexico’s Minister of Economy, Marcelo Ebrard, who stated today that the total proposed tariffs of 25% by Trump would cause a collapse in the labor market and slow down the growth of the US economy, while also negatively affecting Mexican exports.
“This is self-destructive,” said the Mexican minister during a press conference, adding that Mexico desires greater regional cooperation and integration instead of a retaliatory tariff war.
Ebrard explained that the proposed tariffs would hit the world’s leading automobile exporters, especially Ford, General Motors, and Stellantis, and would raise car prices for consumers by thousands of dollars.
Meanwhile, Mexican President Claudia Sheinbaum called for dialogue and cooperation between the two trade partners, a day after Trump announced the measure, which seems to contradict the free trade agreement he signed during his first term.
She hinted that Mexico would respond with retaliatory tariffs, while analysts speculate about the possibility of a new trade war under the presidency of the Republican magnate.
The Mexican Automotive Industry Association (AMIA) said it would prepare for any eventuality and would wait to see what official actions would be taken.
