Mexico said Thursday that it wanted preferential treatment if U.S. President Donald Trump goes ahead with steep car tariffs, vowing a “comprehensive response” to Washington’s duties.
President Claudia Sheinbaum said that tariffs were contrary to a North American free trade deal that has led to a booming auto industry in Mexico, which is home to many foreign-owned car plants.
“Of course, there should be no tariffs within the United States-Mexico-Canada (USMCA) trade agreement. That is the essence of the trade agreement,” she said at a news conference.
Trump on Wednesday announced a 25 per cent tariff on all cars that are not made in the United States, part of a broad-ranging trade war against partners and competitors alike that he says is aimed at addressing “unfair” practices.
“If we are moving to a system of such high tariffs, what we have to look for is preferential treatment for Mexico,” Mexican Economy Minister Marcelo Ebrard said.
The preferential treatment would enable the Latin American country to “protect our jobs and Mexico’s economic activity,” he said, speaking by video link from Washington, where he held talks with senior U.S. officials.
Sheinbaum said that Mexico would wait until early April — when Trump has promised reciprocal tariffs tailored to each U.S. trading partner — before giving a “comprehensive response.”
“That does not mean that the doors to working with the United States are closed,” she said.
Sheinbaum has repeatedly expressed optimism that U.S. tariffs on Mexican goods can be averted, and Trump has twice granted Mexico tariff relief, which is due to expire in early April.
Booming U.S.-Mexico trade
Mexico replaced China in 2023 as the United States’ largest trading partner, with the Latin American country’s northern neighbour buying more than 80 per cent of its exports.
Mexico exports nearly three million automobiles to the United States a year — including cars and trucks assembled by U.S. auto companies — and the vehicle sector generates around five per cent of its national economic output.
Ebrard noted that, according to the White House, those vehicles would qualify for lower tariffs if some of their components were made in the United States.
Mexico has also been assured that products will not be subjected to multiple tariffs if they cross the U.S. border several times during the manufacturing process, he said.
Seeking to ease concerns about the Mexican economy in the face of Trump’s tariff threats, Sheinbaum has invited several company executives to her news conferences to present their investment plans.
On Thursday, U.S. retail giant Walmart said that it would invest more than $6 billion in Mexico this year, generating several thousand jobs.
