Mexico’s President Claudia Sheinbaum listens a query throughout her every day press convention on the Nationwide Palace in Mexico Metropolis on January 21, 2025. Agence France-Presse
MEXICO CITY — 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 towards Donald Trump’s sweeping tariffs.
Tensions between the carefully related neighbors soared after the White Home mentioned Trump would slap 25-percent tariffs on Mexican in addition to Canadian items due to unlawful immigration and drug smuggling.
Sheinbaum mentioned she had advised her financial system minister, Marcelo Ebrard, “to implement Plan B that we’ve been engaged on, which incorporates tariff and non-tariff measures in protection of Mexico’s pursuits.”
READ: US unveils sweeping tariffs on Canada, Mexico, China
Ebrard known as Trump’s tariffs a “flagrant violation” of the USA’ free commerce settlement with Mexico and Canada.
Article continues after this commercial
Sheinbaum additionally hit again after Washington accused her authorities of getting an “insupportable alliance” with drug trafficking teams.
Article continues after this commercial
“We categorically reject the slander made by the White Home towards the Mexican authorities about alliances with felony organizations,” Sheinbaum wrote on social media platform X.
“If there may be such an alliance anyplace, it’s within the US gun retailers that promote high-powered weapons to those felony teams,” she added.
READ: Mexico suggests to impose personal tariffs to retaliate vs Trump tariffs
“If the USA authorities and its companies needed to deal with the intense consumption of fentanyl of their nation, they will fight the sale of narcotics on the streets of their essential cities, which they don’t do, and the cash laundering generated by this criminality that has accomplished a lot hurt to their inhabitants,” Sheinbaum mentioned.
Though US 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 mentioned.
“It’s actually unprecedented that the US authorities has now formally linked the Mexican authorities to drug trafficking in an official doc,” he advised AFP.
“Trump makes use of this rhetoric to stress nevertheless it ought to by no means be taken evenly,” he added.
Mexican recession doable
Analysts mentioned the tariffs imposed by Mexico’s greatest commerce companion would deal a heavy blow to Latin America’s second-largest financial system.
The USA purchased greater than 80 % of Mexico’s exports final yr, in accordance with official figures.
“Since exports to the US account for round 20 % of their GDP, right now’s tariffs might plunge each the Canadian and Mexican economies into recession later this yr,” the Capital Economics consultancy agency wrote in a word to shoppers.
An across-the-board tariff of 25 % might 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 “might fall by 4 % 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 financial system will fall right into a extreme recession,” Siller added.
Your subscription couldn’t be saved. Please strive once more.
Your subscription has been profitable.
First posted 11:02 am