After Donald Trump announced plans to impose a 25% tariff on all goods imported from Mexico and Canada, Mexican President Claudia Sheinbaum warned her country may react with tariffs of its own.

Trump also intends to impose additional tariffs on China, claiming their exports to the US will be targeted until China (alongside Mexico) addresses issues such as fentanyl trafficking and illegal immigration.

Sheinbaum stated that while she was open to discussing the concerns, drugs were a US problem, and Mexico made significant efforts to curb the flow of migrants, noting that "caravans of migrants no longer reach the border." 

Sheinbaum stated that Mexico had an inflow of guns brought in from the United States, and that drug trafficking "is a public health and consumption problem in your country's society."

In a scathing response, she suggested that if the US spends a portion of what it does on war, on peace and development, it would " address the underlying causes of migration."

A very different president

Analysts believe Trump is dealing with a very different Mexican president than he did during his first term. 

Sheinbaum, who began her term on October 1, is a leftist former mayor of Mexico City, and a scientist by training, who seems less prepared to appease Trump, citing "We negotiate as equals, there is no subordination here, because we are a great nation."

However, Gabriela Siller, director of economic research at the banking organization Banco Base, is concerned that the personality conflict may not lead to negotiation since Trump plainly dislikes losing.

"Trump may have just tossed the threat out there, as he does," Siller told AP. "But Mexico's response, that we're going to respond to you with tariffs, that will make Trump really impose them."

"It is unacceptable and would cause inflation and job losses in Mexico and the United States," Sheinbaum said, offering to discuss the concerns. “If tariffs go up, who will it hurt? General Motors,” she warned.

"Dialogue is the best path to achieve understanding, peace and prosperity for our two countries," Sheinbaum expressed, expressing hope that both teams could meet.

'No one wins the trade war' 

In response to Trump's threats, China warned that a trade war would result in no winners. Liu Pengyu, a spokesperson for the Chinese embassy in Washington, emphasized that China had already taken steps to address drug trafficking following a 2023 agreement between President Biden and President Xi Jinping.

In a statement, he said, “The Chinese side has notified the US side of the progress made in US-related law enforcement operations against narcotics,” adding, “All these prove that the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality.”