Mexico Shuns Retaliation Against US Tariffs, Relies on Trade Agreement

Mexico's economy minister Marcelo Ebrard announced that his country will not impose tariffs in retaliation to the new commercial onslaught launched by US President Donald Trump. The decision was made after considering the impact of escalating a trade conflict with the world's largest economy.

Ebrard stated, 'We have chosen a path of not escalating the conflict because if you impose tariffs, they will impose more tariffs or raise tariff rates,' and emphasized that it is highly unlikely to beat the US in such a situation. Mexico is indeed subject to a 10% tariff on exports under the newly implemented Section 301 of the US Trade Act of 1974.

However, thanks to the United States-Mexico-Canada trade agreement (USMCA), approximately 85% of Mexican exports are protected from tariffs. This means that only those commodities not covered by the USMCA will face additional taxes under Section 301. President Claudia Sheinbaum reinforced this point during a news conference, stating that Mexico has maintained a preferential position compared to the rest of the world.