Mexican President Claudia Sheinbaum has expressed a desire to avoid imposing retaliatory tariffs on the US, despite President Donald Trump’s comprehensive tariff plans.
This statement comes as Mexico, which sends nearly 80% of its exports to the US, was spared from Trump’s recent global tariff announcement, reported Reuters.
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“As much as possible, we would like to avoid imposing reciprocal tariffs,” Sheinbaum stated during a press conference.
However, Mexico is still affected by Trump’s earlier tariffs of 25% on steel, aluminium and automobiles, along with goods that do not comply with the regional US-Mexico-Canada Agreement (USMCA) trade agreement.
The Mexican Government will issue decrees in May aimed at bolstering the domestic auto, steel and aluminium sectors.
Economy Minister Marcelo Ebrard will travel to Washington to engage in discussions with US officials, continuing the recent weeks’ efforts to address trade tensions.
The talks will also initiate a review of the USMCA, which has been the foundation of North American trade for nearly five years.
During the meetings, Mexican officials plan to raise the issue of the USMCA side letters negotiated during Trump’s first administration.
These letters had granted Mexico and Canada generous duty-free automotive import quotas in the event that Section 232 national security tariffs on automobiles were implemented.
However, Trump’s administration has shown no intention of honouring those quota commitments.
Sheinbaum noted that imposing a retaliatory tariff of 25% on US steel and aluminium “would represent price increases in Mexico”. She emphasised: “We aren’t ruling it out, but we prefer to continue with dialogue.”
Mexican officials argue that the US tariffs on steel and aluminium are unwarranted, given that Mexico imports more from the US in this sector than it exports.
Last week, Trump announced a minimum 10% tariff on nearly all US imports, with steeper rates for key partners such as China and the EU.
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