Mexico City, Nov 28 (IANS) — The Employers' Confederation of the Mexican Republic (Coparmex) has issued a warning that US President-elect Donald Trump's proposal to impose tariffs on Mexico and Canada could destabilize the regional job market and undermine economic cooperation under the United States-Mexico-Canada Agreement (USMCA).
Trump's repeated threats to impose a 25% tariff on goods from Mexico and Canada could have far-reaching consequences, jeopardizing millions of jobs reliant on cross-border trade. Coparmex highlighted that such actions could:
Disrupt key sectors like automotive and manufacturing.
Create uncertainty for businesses and investors.
Strain the economic stability of the North American region.
Potential Economic Fallout
A trade conflict between Mexico and the US would be particularly damaging for industries heavily dependent on US components, and retaliatory tariffs could hurt businesses and consumers in both countries.
"The USMCA should be viewed as a strategic framework to enhance regional competitiveness, not as a tool for political leverage, " Coparmex stated.
Mexico Vows Retaliation
Mexican President Claudia Sheinbaum has warned that Mexico would respond with reciprocal tariffs if the US moves forward with its threats. In a letter addressed to Trump, she emphasized Mexico’s readiness to defend its economic interests.
Trump's tariff proposal, linked to demands for action on immigration and drug trafficking, has sparked concerns about the future of North American trade relations, which are critical for economic growth and job creation across the region.