President Claudia Sheinbaum has vowed to retaliate against tariffs imposed by the Trump administration, denouncing the White House’s accusations as baseless slander. She rejected claims that the Mexican government has an alliance with drug cartels and pledged to take measures to safeguard Mexico’s economy.
“I have discussed with Economy Minister Marcelo Ebrard the implementation of Plan B, which includes tariff and non-tariff measures to protect Mexico’s interests,” Sheinbaum said.
She called Washington’s tariff decision a blatant violation of the free trade agreement between the US, Mexico, and Canada, criticizing the move as unjust and damaging to economic stability.
The announcement came just hours after US President Donald Trump signed an executive order imposing a 25% tariff on goods from Mexico, as well as a 25% tariff on almost all Canadian goods and a 10% tariff on Chinese goods.
The White House defended the decision, stating that President Trump was taking strong action to hold Mexico, Canada, and China accountable for their commitments to curb illegal immigration and the flow of toxic fentanyl and other narcotics into the United States.
The Trump administration has accused Mexican drug cartels of operating with the facilitation of the Mexican government. According to US officials, these cartels have been allowed to expand production and trafficking of dangerous substances, contributing to the opioid crisis and resulting in the deaths of hundreds of thousands of Americans due to fentanyl overdoses.
Sheinbaum strongly denied the accusation and denounced it as an attempt to deflect responsibility. “We categorically reject the White House’s slander.
If such an alliance exists, it is a network in the United States that sells heavy weapons to cartels,” she wrote on X. She argued that instead of blaming Mexico, the US should focus on its domestic issues related to drug consumption, money laundering, and street-level sales of illicit substances, which it has failed to control effectively.
Retired Mexican diplomat Agustin Gutierrez Canet noted the severity of Washington’s accusation, emphasizing that this was the first time the US had formally accused the Mexican government of colluding with drug cartels. “It's unprecedented for the US to accuse the Mexican government of links to drug trafficking in an official document,” he said. “Trump is using such language to exert pressure, but it should never be taken lightly.”
The imposition of tariffs could have devastating economic consequences for Mexico. The US is Mexico’s largest trading partner, and these tariffs could severely impact Mexico’s economy, where exports to the US constitute 80% of its total exports. These exports represent approximately 20% of Mexico’s GDP, making the country highly vulnerable to such economic pressures.
Economic analysts have warned that the tariffs could trigger a recession in Mexico by the end of the year. Capital Economics, a financial consultancy, has projected a contraction in economic growth, while experts fear that prolonged tariff enforcement could worsen the situation.
Wendong Zhang of Cornell University in New York estimated that Mexico could lose 2% of its real GDP due to the tariffs. Gabriela Siller, director of economic analysis at financial group Banco BASE, has offered an even grimmer outlook, predicting that Mexico could lose up to 4% of its GDP by the end of the year, with exports potentially falling by 12%.
Sheinbaum’s government is considering its next steps, and countermeasures are expected to be announced in response to Washington’s actions. Mexican officials have stressed that they will take all necessary measures to defend their economy and protect businesses from the fallout of the US tariffs.
Mexico has historically relied on strong economic ties with the US, but the new measures may force a reassessment of trade relationships and diversification of markets.
The tariffs have sparked significant debate among economists and trade experts. Some argue that while Mexico’s economy will suffer, US consumers and businesses will also feel the impact of higher costs for imported goods.
Tariffs often result in increased prices for American manufacturers who rely on Mexican imports, affecting industries such as automotive, agriculture, and consumer goods. As a result, analysts predict supply chain disruptions and inflationary pressures that could affect both nations.
Trump’s decision to impose tariffs comes at a politically charged moment, with the US presidential election approaching. His administration has frequently blamed Mexico for issues related to drug trafficking and illegal immigration, using strong rhetoric to justify economic measures.
Critics argue that Trump’s policies are more about political posturing than actual problem-solving, designed to appeal to his voter base rather than address the root causes of drug-related issues.
Sheinbaum’s administration has pushed back against the narrative, asserting that Mexico has cooperated extensively with US authorities to combat drug trafficking. Mexican security forces have conducted large-scale operations against cartels, and the government has worked on improving border security.
Sheinbaum has also highlighted that fentanyl is primarily synthesized in China and smuggled into the US through various channels, including legal ports of entry, not just across the Mexican border.
Despite the escalating tensions, Mexico is seeking diplomatic dialogue to de-escalate the situation. Mexican Foreign Minister Alicia Bárcena has called for negotiations with US officials to address the trade dispute, hoping to find common ground before the tariffs take full effect. The Mexican government aims to engage in discussions that could prevent further economic harm and maintain stability in trade relations.
The business community on both sides of the border has expressed concern over the tariffs. Many US companies with operations in Mexico have warned that the economic disruption could negatively impact production and job markets. American agricultural producers, in particular, have voiced fears that retaliatory measures from Mexico could harm US exports, further complicating an already tense trade environment.
Mexican lawmakers have urged Sheinbaum to adopt a firm stance while also seeking constructive dialogue with Washington. Some political leaders advocate for targeted retaliatory tariffs on key American exports, such as agricultural products, to exert pressure on US policymakers. However, others argue that escalating the trade war could lead to long-term damage and advocate for a negotiated solution instead.
The dispute underscores broader challenges in US-Mexico relations. While both countries remain economically interdependent, political tensions continue to shape their interactions. The Trump administration’s aggressive trade policies have strained the relationship, raising questions about the future of North American trade agreements and the stability of cross-border economic partnerships.
Sheinbaum remains steadfast in her opposition to the US allegations, determined to protect Mexico’s sovereignty and economic interests. “We will not allow our nation to be used as a scapegoat,” she declared. As the situation develops, Mexico must navigate both economic risks and diplomatic complexities to mitigate the potential fallout of Washington’s latest move.