Mexico responds to Trump's tariff threat as markets react

Mexican President Claudia Sheinbaum responded to President-elect Donald Trump's proposed 25% tariffs on imports from Mexico. She indicated that Mexico may retaliate, as the peso fell against the dollar following Trump's announcement. Sheinbaum stated that tariffs would not solve issues related to migration and drug trafficking. She warned that retaliatory tariffs could endanger shared businesses, particularly affecting major U.S. car manufacturers that export to Mexico. She emphasized that such tariffs would lead to inflation and job losses in both countries. The situation marks a significant escalation in trade tensions between the U.S. and Mexico.