Mexican President Claudia Sheinbaum angrily rejected an accusation by the USA Saturday that her authorities has an alliance with drug cartels, and vowed to retaliate in opposition to Donald Trump’s sweeping tariffs.
Tensions between the intently linked neighbors soared after the White Home stated Trump would slap 25% tariffs on Mexican in addition to Canadian items due to unlawful immigration and drug smuggling. Nonetheless, Mr. Trump introduced Monday he’s pausing U.S. tariffs concentrating on imports from Mexico for a month after Sheinbaum agreed to ship 10,000 troops to the U.S.-Mexico border to fight the stream of fentanyl.
“Mexico will reinforce the northern border with 10,000 members of the Nationwide Guard instantly, to cease drug trafficking from Mexico to the USA, specifically fentanyl,” Sheinbaum posted on social media. “The USA commits to work to cease the trafficking of excessive powered weapons to Mexico.”
Earlier, Sheinbaum stated she had instructed her economic system minister, Marcelo Ebrard, “to implement Plan B that now we have been engaged on, which incorporates tariff and non-tariff measures in protection of Mexico’s pursuits.”
Ebrard known as Trump’s tariffs a “flagrant violation” of the USA’ free commerce settlement with Mexico and Canada.
Sheinbaum additionally hit again after Washington accused her authorities of getting an “insupportable alliance” with drug trafficking teams.
“We categorically reject the slander made by the White Home in opposition to the Mexican authorities about alliances with legal organizations,” Sheinbaum wrote earlier on social media.
“If there may be such an alliance anyplace, it’s within the U.S. gun outlets that promote high-powered weapons to those legal teams,” she added.
“If the USA authorities and its companies wished to handle the intense consumption of fentanyl of their nation, they will fight the sale of narcotics on the streets of their foremost cities, which they do not do, and the cash laundering generated by this criminal activity that has accomplished a lot hurt to their inhabitants,” Sheinbaum stated.
Henry Romero / REUTERS
Though U.S. politicians and analysts have beforehand alleged Mexican authorities collaboration with cartels, it’s the first time {that a} formal accusation has been made, retired Mexican diplomat Agustin Gutierrez Canet stated.
“It is actually unprecedented that the U.S. authorities has now formally linked the Mexican authorities to drug trafficking in an official doc,” he instructed AFP.
“Trump makes use of this rhetoric to strain however it ought to by no means be taken flippantly,” he added.
Analysts stated the tariffs imposed by Mexico’s greatest commerce associate would deal a heavy blow to Latin America’s second-largest economic system.
The USA purchased greater than 80% of Mexico’s exports final yr, in accordance with official figures.
“Since exports to the U.S. account for round 20 p.c of their GDP, in the present day’s tariffs may plunge each the Canadian and Mexican economies into recession later this yr,” the Capital Economics consultancy agency wrote in a notice to purchasers.
Customers could face a surge in costs for fruits, greens and nuts imported from Mexico, together with avocados.
The U.S. imported greater than $45 billion in agricultural merchandise from Mexico in 2023, together with contemporary strawberries, raspberries, tomatoes and beef, in accordance to the U.S. Division of Agriculture. The U.S. additionally imports Mexican beer, tequila and different drinks and spirits.
An across-the-board tariff of 25% may result in a drop in Mexican exports of round 12%, in accordance with Gabriela Siller, head of financial evaluation for the monetary group Banco BASE.
Mexico’s gross home product “may fall by 4 p.c in 2025, if the tariff stays in place all yr,” she warned.
“By the top of 2024, Mexico was on the verge of a recession. If this tariff lasts for a number of months, the Mexican economic system will fall right into a extreme recession,” Siller added.
