Mexico Will Not Retaliate Against US Tariffs, Relies on Trade Agreement

Mexico City (ANTARA) - Mexican Economy Minister Marcelo Ebrard affirmed on Friday (24/7) that his government will not impose retaliatory tariffs in response to United States President Donald Trump’s policy of launching a new wave of trade tariffs against various countries.

“We have chosen the path of not escalating the conflict, because if you impose tariffs, they will impose higher tariffs or raise existing ones, and it is very unlikely that in the end you can defeat the world’s largest economy,” Ebrard told Formula Noticias.

The Trump administration implemented new tariffs on 60 economies under Section 301 of the United States Trade Act of 1974, which aims to prohibit imports of goods produced using forced labour.

As of Friday, countries trading with the United States are no longer governed by Section 122, which previously allowed the imposition of additional charges to address fundamental problems in international payments, and are instead subject to tariffs under the newly applied Section 301.

Under the new scheme, Mexico will face a 10 per cent tariff on its exports. However, as the largest trading partner and closest neighbour of the United States, Mexico receives protection through the United States-Mexico-Canada Agreement (USMCA), which shields roughly 85 per cent of Mexican exports from tariffs.

The 10 per cent tariff provided for under the trade law will only apply to exports outside the scope of the USMCA. Those commodities had previously also been subject to tariffs under Section 122, meaning Mexican exports will not face additional tariffs as a result of the new policy ordered by Trump.

“The decision to raise tariffs is a unilateral decision by the United States government, directed not only at Mexico but at every country in the world. What we are striving for is to maintain a more advantageous position compared to other countries. At present we still have it, because 80 per cent of our exports are not subject to any tariffs,” Mexican President Claudia Sheinbaum said at a press conference on Friday.