“There is no subordination here,” the president said. Claudia Sheinbaumwho, in response to the president-elect of the United States, Donald Trump, called on the markets to calm, even though he warned that “one tariff will come in response.”
However, the Mexican president, who announced that she will not only send a letter, but will also seek to make a call with the American magnate, ruled out any trade war.
“President Trump: it is not with threats or tariffs that the problem is going to be addressed.” migration phenomenon nor the drug use in the United States“, the president warned in the letter in response to the Republican’s threat to impose a 25 percent tariff on all products from both Canada and Mexico that arrive in the United States on his first day in office.
He stressed that cooperation and reciprocal understanding are required to face the great challenges of migration and fentanyl trafficking.
He emphasized that the Mexican government works comprehensively on both matters, and proof of this is that, for example, encounters on the border between Mexico and the United States have been reduced by 75 percent, from December 2023 to November 2023. 2024.
Likewise, he reproached in the letter that arms trafficking from the United States to Mexico represents a major problem that requires closer collaboration.
Given this, he expressed his confidence that his government will reach an agreement with Trump’s, since, he highlighted, the increase in tariffs would harm both American companies operating in Mexico and consumers in the United States.
“This is until we put common companies at risk. Yes, common. For example, of the main exporters from Mexico to the United States are General Motors, Stellar y Ford Motors Companywhich arrived in Mexico 80 years ago. Why impose a tax that puts them at risk? It is not acceptable and would cause inflation and job losses in the United States and Mexico,” he said.
He anticipated that this Wednesday members of the Business Advisory Council, that coordinates Altagracia Gomez Sierraalong with the Secretary of Economy, Marcelo Ebrard, to demonstrate the impacts that the increase in tariffs will represent for the US economy. Furthermore, he reported that his administration works on the Mexico Planwhich will be previewed and formally presented on December 5.
On the other hand, the president announced that she will also send a letter to the Prime Minister of Canada, Justin Trudeau, given the misinformation surrounding the Mexico’s contributions to the Treaty between Mexico, the United States and Canada (T-MEC)and its commercial relations with China.
“I propose in the letter that in 2023, Canadian imports of electric vehicles of Chinese origin reached $1.6 billion, showing exponential growth; In the case of Mexico it is much lower,” said the President.
“While the foreign direct investment, from 2006 to 2024from the United States and Canada, has been 33,357 million dollars in the automotive sector, while in Mexico, that of China is only 590 million,” added Sheinbaum Pardo.
How can cooperation on security issues, like arms trafficking and drug trafficking, influence trade negotiations between Mexico and the U.S.?
Time.news Interview: Navigating Trade Relations in a Tumultuous Era
Editor: Welcome to Time.news! Today, we have a special guest, Dr. Mariana Torres, an expert in international trade and relations, to discuss the recent tensions between Mexico and the United States under the looming presidency of Donald Trump. Thank you for joining us, Dr. Torres.
Dr. Mariana Torres: Thank you for having me! I’m excited to delve into these pressing issues.
Editor: Let’s start with the recent statements from President Claudia Sheinbaum. How significant is her emphasis on cooperation over confrontation when addressing trade issues, particularly in response to Trump’s proposed tariffs?
Dr. Torres: It’s extremely significant. President Sheinbaum’s call for calm and cooperation indicates a desire to foster dialogue instead of escalating tensions. She understands that both nations share a complex economic interdependence, especially with major American companies like General Motors and Ford having substantial operations in Mexico. A trade war would only exacerbate the existing issues, harming businesses and consumers on both sides.
Editor: Sheinbaum mentioned that ”one tariff will come in response.” What does this imply about Mexico’s potential response strategy?
Dr. Torres: That statement underscores a defensive posture. It suggests Mexico is prepared to retaliate but prefers to approach the problem through dialogue rather than threats. This kind of measured response is vital, as it could help preserve trade relations and prevent a spiral of retaliatory tariffs that would negatively impact both economies.
Editor: In her communication, Sheinbaum also highlighted issues like migration and drug trafficking, specifically fentanyl. How do these factors play into the trade discussion?
Dr. Torres: Migration and drug trafficking are deeply intertwined with trade discussions—especially with regard to fentanyl. The flow of goods affects the flow of people, and issues of security and illegal trafficking can impede legitimate trade. Sheinbaum is right to emphasize cooperation on these fronts; a unified approach can lead to solutions that benefit both nations, using the trade dialogue to address deeper security concerns.
Editor: She stated that border encounters have reduced by 75 percent from December to November 2024. What does this indicate about ongoing efforts and their success?
Dr. Torres: That statistic is promising and reflects an effective strategy implemented by the Mexican government. It indicates progress in managing migration flows without resorting to punitive measures. Success in these efforts can foster goodwill and demonstrate that Mexico is actively addressing concerns, which can help in negotiations with the U.S.
Editor: Sheinbaum also mentioned arms trafficking as a major issue needing collaboration. Can you elaborate on how arms flow into Mexico affects trade relations?
Dr. Torres: Absolutely. Arms trafficking from the U.S. to Mexico creates instability, which can undermine any economic agreements made. Violence and insecurity can deter investment from U.S. companies and threaten the operations of American firms in Mexico, leading to a less favorable economic environment for trade. Addressing arms trafficking collaboratively can help ensure a more stable context for trade relations.
Editor: Dr. Torres, what do you think is at stake for both countries if tariffs were imposed?
Dr. Torres: If tariffs are imposed, it could lead to increased costs for consumers, disrupted supply chains, and diminished competitiveness for American companies operating in Mexico. It puts jobs at risk on both sides of the border and can escalate tensions—leading us back into a cycle of retaliation. The stakes are incredibly high, which is why dialogue remains so crucial.
Editor: Thank you, Dr. Torres, for your insights! It’s clear that maintaining a constructive dialogue is essential for mutual benefit in these complex issues. We look forward to seeing how this situation develops.
Dr. Torres: Thank you! It’s been a pleasure discussing these vital topics.