Mexican President Claudia Sheinbaum angrily rejected an accusation via the US Saturday that her govt has an alliance with drug cartels, and vowed to retaliate in opposition to Donald Trump’s sweeping tariffs.
Tensions between the carefully hooked up neighbors soared after the White Area mentioned Trump would slap 25% tariffs on Mexican in addition to Canadian items as a result of unlawful immigration and drug smuggling.
Sheinbaum mentioned she had informed her economic system minister, Marcelo Ebrard, “to put in force Plan B that we have got been operating on, which contains tariff and non-tariff measures in protection of Mexico’s pursuits.”
Ebrard referred to as Trump’s price lists a “flagrant violation” of the US’ loose business settlement with Mexico and Canada.
Sheinbaum additionally hit again after Washington accused her govt of getting an “insupportable alliance” with drug trafficking teams.
“We categorically reject the slander made via the White Area in opposition to the Mexican govt about alliances with legal organizations,” Sheinbaum wrote on social media.
“If there may be such an alliance any place, it’s within the U.S. gun stores that sell high-powered weapons to those legal teams,” she added.
“If the US govt and its businesses sought after to handle the intense intake of fentanyl of their nation, they may be able to struggle the sale of narcotics at the streets in their major towns, which they do not do, and the cash laundering generated via this criminal activity that has executed such a lot hurt to their inhabitants,” Sheinbaum mentioned.
Henry Romero / REUTERS
Even supposing U.S. politicians and analysts have up to now alleged Mexican govt collaboration with cartels, it’s the first time {that a} formal accusation has been made, retired Mexican diplomat Agustin Gutierrez Canet mentioned.
“It is in reality extraordinary that the U.S. govt has now officially connected the Mexican govt to drug trafficking in an legitimate file,” he informed AFP.
“Trump makes use of this rhetoric to power however it must by no means be taken evenly,” he added.
Analysts mentioned the price lists imposed via Mexico’s largest business spouse would deal a heavy blow to Latin The us’s second-largest economic system.
America purchased greater than 80% of Mexico’s exports final 12 months, in keeping with legitimate figures.
“Since exports to the United States account for round 20 % in their GDP, as of late’s price lists may plunge each the Canadian and Mexican economies into recession later this 12 months,” the Capital Economics consultancy company wrote in a be aware to shoppers.
Shoppers would possibly face a surge in prices for fruits, vegetables 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 red meat, according to the U.S. Division of Agriculture. The U.S. additionally imports Mexican beer, tequila and different beverages and spirits.
An across-the-board tariff of 25% may result in a drop in Mexican exports of round 12%, in keeping with Gabriela Siller, head of monetary research for the monetary team Banco BASE.
Mexico’s gross home product “may fall via 4 % in 2025, if the tariff stays in position all 12 months,” she warned.
“Via the tip of 2024, Mexico used to be at the verge of a recession. If this tariff lasts for a number of months, the Mexican economic system will fall right into a serious recession,” Siller added.
