Mexico Spares Tariffs in Response to Trump Trade Measures

Mexico will not impose tariffs in retaliation to US President Donald Trump's new commercial onslaught against the world, according to Mexican Economy Minister Marcelo Ebrard. In a statement on Friday, Ebrard explained that Mexico has chosen not to escalate the conflict, as imposing tariffs would only lead to higher rates or more tariffs from the US.

'We have chosen a path of not escalating the conflict because if you impose tariffs, they will impose more tariffs or raise tariff rates,' Ebrard said. 'It is highly unlikely that, at the end of the day, you will beat the world's largest economy.'

The Trump administration has slapped new levies on 60 economies under Section 301 of the US Trade Act of 1974, which prohibits the importation of goods produced with forced labor. Mexico would be subjected to a 10% tariff on exports under this new scheme, but most Mexican exports are protected from tariffs under the United States-Mexico-Canada trade agreement.

'The decision to raise tariffs is a unilateral decision by the United States government, and it is not only aimed at Mexico but at every country in the world,' said President Claudia Sheinbaum. 'At this moment, we have it because 80% of what we export is not subject to any tariffs.'