Mexico may retaliate with its own tariffs after Trump threat, new president says

foxbusiness.com:

Rep. Eric Burlison, R-Mo., talks President-elect Trumps tariff plans, the DOJ dropping Trumps federal election case and a bill to abolish Americas Bureau of Alcohol, Tobacco, Firearms and Explosives.

Mexican President Claudia Sheinbaum has clapped back at President-elect Trump’s proposed 25% tariff on imported goods from Mexico, saying she would impose tariffs of her own on the U.S. and suggested it could lead to a tit-for-tat trade war between the countries as well as more inflation.

Trump on Monday said he would issue an executive order upon taking office to charge Mexico and Canada a 25% tariff on all products coming into the United States, as well as additional tariff hikes on China over the flow of illegal immigrants and illicit drugs. 

In a Truth Social post, Trump, who takes office on Jan. 20, 2025, said thousands of people were «pouring through» Mexico and Canada «at levels never seen before.»

Mexican President Claudia Sheinbaum suggested Tuesday that Mexico could retaliate with tariffs of her own if President-elect Trump moves ahead with a 25% tariff on the country, sparking fears of a trade war. (Emmanuel Rosas/ObturadorMX/Getty Images, left, and Allison Robbert-Pool/Getty Images, right. / Getty Images)

TRUMP'S TARIFFS WOULD DRIVE UP CONSUMER PRICES: NATIONAL RETAIL FEDERATION

But Sheinbaum, who has been in office for about seven weeks, on Tuesday warned that tariffs would cause inflation and job losses in both countries, highlighting the number of U.S. auto manufacturers based in Mexico. 

«One tariff will follow another and so on, until we put our common businesses at risk,» Sheinbaum said in a letter to Trump, which she read at a press conference and plans to send later today.

«What sense is there?» in