Sheinbaum, Claudia

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Trump’s Tariff Threat Pits Canada Against Mexico

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If President-elect Donald J. Trump’s threat of hefty tariffs on Canada and Mexico was intended as a divide-and-conquer strategy, early signs show that it might be working.After his missive on Monday, in which he said he planned to impose a 25 percent tariff on all imports from both of the United States’ neighbors, Ottawa and Mexico City followed starkly different approaches.Mexico took a tough stance, threatening to retaliate with its own tariffs on U.S. goods. Canada, instead, emphasized that it was much closer aligned to the United States than Mexico.The trade agreement between the three North American nations has been carefully maintained over the past three decades through a delicate balance between the United States and its two key allies.As Mr. Trump prepares to take office, his willingness to tear that up to pressure the two countries on migration could open the door to the United States-Mexico-Canada agreement being replaced by separate bilateral deals with the United States.Chrystia Freeland, Canada’s finance minister, has tried to show that Canada is aligned with Mr. Trump’s hawkish attitude toward China.Blair Gable/ReutersWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Mexican President Mulls Retaliatory Tariffs After Trump’s Threats

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    Mexico’s president, Claudia Sheinbaum, hit back on Tuesday morning at President-elect Trump’s vow to impose 25 percent tariffs on all products coming into the United States from Mexico, signaling that her country was prepared to respond with retaliatory tariffs of its own.Ms. Sheinbaum also said that raising tariffs would fail to curb illegal migration or the consumption of illicit drugs in the United States, an argument that Mr. Trump had made in his warning on tariffs.“The best path is dialogue,” Ms. Sheinbaum said at her daily news conference, calling for negotiations with the incoming Trump administration while laying out steps that Mexico has already taken to assuage some of Mr. Trump’s concerns.Ms. Sheinbaum, reading from a letter she is planning to send to Mr. Trump, noted that illegal crossings at the border between Mexico and the United States had plunged from December 2023 to November 2024, largely as a result of Mexico’s own efforts to stem migration flows within its own territory.“Migrant caravans no longer reach the border,” she added.Ms. Sheinbaum also called on U.S. authorities to do more to address the root causes of migration.“Allocating even a fraction of what the United States spends on warfare toward peace building and development would address the deeper drivers of migration,” Ms. Sheinbaum wrote in the letter.Ms. Sheinbaum also raised the specter of a broader tariff war that could inflict damage on the economies of both nations, pointing to multinational car manufacturers like General Motors, Stellantis and Ford Motor Co., which have operated in Mexico for decades.“Why endanger them with tariffs that would harm both nations?” Ms. Sheinbaum wrote. “Any tariffs imposed by one side would likely prompt retaliatory tariffs, leading to risks for joint enterprises.”Mexico is far more dependent on trade with the United States than vice versa, exporting about 80 percent of its goods to its northern neighbor.But numerous sectors in the United States, such as semiconductor and chemicals manufacturers, also rely on exporting to Mexico. Exports to Mexico accounted for nearly 16 percent of overall American exports in 2022.Ms. Sheinbaum also said that Mexico was already taking steps to combat the smuggling of fentanyl to the United States. But she argued that the core problem was demand for fentanyl within the United States, calling the crisis “fundamentally a public health and consumption issue within your society.”“It is widely known that the chemical precursors used to produce fentanyl and other synthetic drugs are illegally entering Canada, the United States, and Mexico from Asian countries,” Ms. Sheinbaum wrote. “This underscores the urgent need for international collaboration.” More