Mexico pledges retaliation amid Trump's tariff decision

In the wake of United States President Donald Trump's decision to impose a sweeping 25% tariff on Mexican imports, Mexican President Claudia Sheinbaum voiced her disapproval and promised to take action (via Reuters).

Sheinbaum called the move unjustified and harmful to both nations, pointing out their strong trade ties, especially in the automotive sector. The tariff risks undermining decades of economic integration, and Mexico, a key trading partner, is ready to retaliate.

While Sheinbaum withheld specifics on her government's response, she confirmed retaliatory tariffs would be introduced and discussed further at a public event in Mexico City, as the Mexican peso slipped and the stock market dropped.

Sheinbaum emphasized that U.S. businesses and consumers would feel the impact of these tariffs through price hikes, especially in the automotive industry. For now, it remains to be seen how the situation will unfold.