Mexico Threatens to Impose Tariffs on American Goods After Trump Pledges to Increase Tariffs on Mexican Exports

Mexican and Canadian officials are reacting to President-elect Donald Trump’s announcement he will be imposing 25% tariffs on all Canadian and Mexican goods until the flow of illegal immigrants and fentanyl ceases.

President-elect Trump promised he would “sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States” until “such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”

Trump is using the tariffs to compel Mexico and Canada to action, as he believes “both Mexico and Canada have the absolute right and power to easily solve” the illegal immigration and fentanyl trafficking problem.

Canada and Mexico have each responded to Trump’s threats in conciliatory and confrontational fashion, respectively.

Canadian Prime Minister Justin Trudeau reportedly called Trump immediately following his tariff announcement to discuss the issue.

“We talked about how the intense and effective connections between our two countries flow back and forth,” said Prime Minister Trudeau. “We talked about some of the challenges that we can work on together.”

Conversely, Mexican President Claudia Sheinbaum criticized Trump’s proposed tariffs and threatened to respond by levying tariffs on American exports to the US.

“One tariff will be followed by another in response,” said President Sheinbaum in a letter she sent to Trump urging him to abandon his tariffs proposal.

“Migration and fentanyl consumption will not be addressed with threats or tariffs,” continued Sheinbaum via X. “Mexico is moving forward with results in comprehensive actions; cooperation and understanding are necessary. Dialogue is the way forward.”

Sheinbaum concluded her letter to Trump by expressing desire for the US and Mexico to negotiate a path out of initiating a tit-for-tat tariff war between the two countries.

General Motors, Stellantis, and Ford Motors, all major exporters to the US from Mexico, are reporting losses in the stock market following Trump and Sheinbaum’s exchange.

Earlier this week, Trump also pledged to expand tariffs on China for complaints similarly related to fentanyl.

“I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail,” said Trump. “Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before.”

Consequently, Trump stated the US ”will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America.”