Responses to Trump's tariffs are coming: Mexico and Canada prepare economic retaliation against US measures

The Trump administration's decision to impose 25% tariffs on imports from Mexico has sparked a new crisis in trade relations between the two countries. The Mexican government has not sat idly by and is preparing for a harsh reaction.

Today, the Mexican Ministry of Finance called investors for a conference call. Minister Rogelio Ramírez will make an official statement, meanwhile, the Mexican Economy Minister Marcelo Ebrard reacted firmly to Donald Trump's statements, who had accused the Mexican government of collusion with drug cartels. “Accusing the Mexican government of being an ally of drug trafficking is, in addition to being an insult to our country, a pretext to distract public opinion in the United States from the terrible mistake of imposing disruptive customs tariffs on Mexico and North American companies established here. A shot in the foot”, wrote Ebrard on his X social profile. The minister then reiterated his opposition to duties and cited the opinion of Lawrence Summers, economist and former US Treasury Secretary, who defined the measures imposed by Trump against Mexico and Canada “inexplicable and dangerous”.

In response, the Mexico is now preparing a package of economic retaliation against the US, which could include tariffs on some American imports and other punitive measures for counteract the impact of the tariff imposed by Washington.

US, tariffs on Mexico, Canada and China

The new tariffs imposed by the United States they don't just hit Mexico. The executive order signed by Donald Trump also provides for 25% duties on products imported from Canada, while China was hit with a slightly lower rate of 10%.

Canadian Prime Minister Justin Trudeau immediately announced countermeasures, imposing in turn 25% tariffs on over $100 billion worth of U.S. goods.

Meantime China has maintained a more moderate attitude compared to Canada and Mexico. With 10% duties instead of 25%, the government of Beijing has left the door open to a possible compromise, underlining that “Dialogue remains the preferred way to resolve trade tensions with Washington”.

A harsh response is also coming from the EU 

While this beginning of a trade war between the United States, Mexico, Canada and China is already inflaming the global economic landscape, the European Union is also expressing its willingness to react to the measures coming from Washington.

In Brussels, in fact, warning signals had already been launched in recent weeks, but now that Trump's measures have become reality, even the President of the European Commission Ursula von der Leyen has expressed her opinion on the matter. “If the American president does not back down, Europe's retaliation will be firm and proportionate”, said von der Leyen.

The EU's proposed countermeasures could include:

• Targeted tariffs on strategic US products,
• New trade agreements with other global powers,
• Cutting strategic dependencies on the US, to reduce America's influence on the European economy.

Economic escalation and the resulting risks 

With Trump's new tariffs and the inevitable countermeasures by the affected countries, Tensions in global markets are set to grow.

According to many economists, this trade war could have negative consequences on several levels:

• Increased costs for companies Americans operating in Mexico and Canada,
• Price hike for consumers Americans on imported products,
• Increased uncertainty in global markets, with possible repercussions on economic growth.

Meanwhile, Mexico, Canada and China will work strengthen their trade ties with other global partners, gradually reducing their dependence on trade with the US.