Mexico, Canada warn Trump against raising tariffs

MEXICO CITY — 

Mexican President Claudia Sheinbaum said connected Wednesday that Mexico would retaliate if U.S. President-elect Donald Trump followed done with his projected 25% across-the-board tariff, a determination her authorities warned could termination 400,000 U.S. jobs and thrust up prices for U.S. consumers.

"If determination are U.S. tariffs, Mexico would besides rise tariffs," Sheinbaum said during a quality conference, successful her clearest connection yet that the state was preparing imaginable retaliatory commercialized measures against its apical commercialized partner.

Mexican Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, called for much determination practice and integration alternatively of a warfare of retaliatory import taxes.

"It's a changeable successful the foot," Ebrard said of Trump's projected tariffs, which look to interruption the USMCA commercialized woody betwixt Mexico, Canada and the U.S.

Ebrard warned the tariffs would pb to monolithic U.S. occupation losses, little growth, and deed U.S. companies producing successful Mexico by efficaciously doubling the taxes they paid. "The interaction connected companies is huge," helium said.

The projected tariffs would deed the automotive sector's apical cross-border exporters particularly hard, Ebrard added, namely Ford, General Motors and Stellantis.

Mexico's automotive manufacture is the country's astir important manufacturing sector, exporting predominantly to the United States. It represents astir 25% of each North American conveyance production.

Analysts astatine Barclays said they estimation the projected tariffs "could hitch retired efficaciously each profits" from the Detroit Three automakers.

Gas prices

Canada is besides looking astatine a coordinated effect with the national authorities and the premiers of the 10 provinces agreeing to enactment successful a agreed mode against a menace by Trump, Finance Minister Chrystia Freeland said Wednesday.

One country affected by the projected tariffs is Canada’s lipid sector.

Even arsenic grounds lipid output has made the U.S. the world's largest shaper successful caller years, much than a 5th of the lipid processed by U.S. refiners is imported from Canada.

In the landlocked U.S. Midwest, wherever refineries process 70% of the much than 4 cardinal barrels per time of Canadian crude imports, consumers could spot pump prices leap by 30 cents per gallon oregon more, oregon astir 10%, based connected existent prices, GasBuddy expert Patrick De Haan said.

Migration and the border

Sheinbaum and Trump spoke by telephone aboriginal connected Wednesday, the Mexican president said connected societal media level X, adding the 2 discussed "strengthening collaboration connected information issues" and that the speech was "excellent."

In a station connected his Truth Social platform, Trump said Sheinbaum "agreed to halt migration done Mexico, and into the United States, efficaciously closing our Southern Border." He described the speech arsenic "very productive."

Sheinbaum's bureau did not instantly respond to a petition for remark from Reuters.

Trump has antecedently said the tariffs would stay successful effect until the travel of drugs -- peculiarly fentanyl -- and migrants into the U.S. was controlled.

Sheinbaum added migrant caravans are nary longer arriving astatine the U.S.-Mexico borderline "because they are attended to" successful Mexico.

A caravan of respective 1000 migrants had been heading done confederate Mexico but numbers person dwindled successful caller days.