Mexico threatens counter-tariffs as Trump announces new trade penalties on imports

President-elect Trump has announced plans for a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese imports, aimed at improving border security and addressing drug smuggling. Mexican President Claudia Sheinbaum responded by threatening counter-tariffs, warning of potential harm to businesses on both sides of the border. Sheinbaum emphasized Mexico's efforts to reduce migrant flows and criticized U.S. spending on military instead of regional development. Meanwhile, a Chinese embassy spokesperson stated that trade wars benefit no one and rejected claims that China facilitates fentanyl trafficking. Trump's tariff threats have caused the Mexican peso to drop over 2%. Concerns are rising about the impact of these tariffs on international trade, particularly for small and medium-sized businesses in China.