Mexico warns U.S. tariffs could cost 400,000 American jobs and signals potential retaliation

Mexican President Claudia Sheinbaum warned that proposed U.S. tariffs of 25% could lead to the loss of 400,000 jobs in the U.S. She stated Mexico would retaliate with its own tariffs if the U.S. moves forward. Economy Minister Marcelo Ebrard emphasized the need for regional cooperation instead of retaliatory measures. He noted that the tariffs would significantly impact U.S. automakers and raise vehicle prices for consumers. The automotive sector, crucial to Mexico's economy, could face severe disruptions. Analysts predict the tariffs might eliminate profits for major U.S. automakers, complicating Mexico-U.S. trade relations ahead of the USMCA review in 2026.