Mexico will not retaliate against Trump's tariffs; exports sheltered under trade agreement

Mexican Economy Minister Marcelo Ebrard pledged Friday to not impose tariffs in retaliation to US President Donald Trump launching a new commercial onslaught against the world.

“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 it is highly unlikely that, at the end of the day, you will beat the world's largest economy,” Ebrard told Formula Noticias.

The Trump administration slapped new levies on 60 economies under the provisions of Section 301 of the US Trade Act of 1974, which strives to prohibit the importation of goods produced with forced labor.

As of today, countries that trade with the US will no longer be governed by Section 122, which enabled surcharges for fundamental international payments problems, and will now pay tariffs under the newly implemented Section 301.

Mexico would be subjected to a 10% tariff on exports under the new scheme. The US' closest and largest trading partner, however, enjoys relative protection from Trump's relentless trade war under the United States-Mexico-Canada trade agreement, which protects 85% of Mexican exports from tariffs.

The 10% rate described by the trade act would affect only those exports that fall outside the USMCA, and those commodities are already taxed under Section 122, meaning Mexican exports will not face additional tariffs under the new set of tariffs ordered by Trump.

“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. What we are seeking is to maintain a preferential position compared to the rest of the world. At this moment, we have it because 80% of what we export is not subject to any tariffs,” President Claudia Sheinbaum said during a news conference Friday.