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

Mexico City (ANTARA) - Mexican Economy Minister Marcelo Ebrard confirmed on Friday that the government will not impose retaliatory tariffs in response to US President Donald Trump’s launch of a new wave of trade tariffs against various countries. “We chose 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 you can ultimately defeat the world’s largest economy,” Ebrard told Formula Noticias. The Trump administration has imposed new tariffs on 60 economies under Section 301 of the US Trade Act of 1974, which aims to prohibit imports of goods produced using forced labour. From Friday, countries trading with the United States are no longer governed by Section 122, which previously allowed additional charges to address fundamental issues in international payments, and are now subject to tariffs under the newly applied Section 301. Under the new scheme, Mexico faces a 10 percent tariff on its exports. However, as the United States’ largest trading partner and closest neighbour, Mexico benefits from protection under the United States-Mexico-Canada Agreement (USMCA), which shields approximately 85 percent of Mexican exports from tariffs. The 10 percent tariff stipulated in the trade law will only apply to exports outside the scope of the USMCA. These commodities were already 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 and is not directed solely at Mexico, but at all countries in the world. What we are seeking is to maintain a more advantageous position compared to other nations. We currently still have that because 80 percent of our exports are not subject to any tariffs,” President Claudia Sheinbaum said at a press conference on Friday.