Mexico warns of massive job losses due to Trump's tariff plans

This week, Mexican Economy Minister Marcelo Ebrard criticized the announced tariffs by designated U.S. President Donald Trump, which are to be set at 25 percent across the board. Ebrard warned that this measure could not only cost 400,000 jobs but also slow economic growth in the U.S. Additionally, Mexican exports could be severely impacted. In a press conference, the minister referred to an "own goal" and stressed that Mexico is focused on enhanced regional cooperation and integration rather than responding to a tariff war. Automotive companies would be particularly hard hit, including industry giants like Ford, General Motors, and Stellantis, which operate as leading exporters across the border. Due to the additional tariffs, vehicle prices could rise by thousands of dollars, which would, in turn, burden American consumers. Mexico is considered the most important trading partner of the U.S., and its automotive industry plays a key role, as it mainly exports to the United States. It accounts for almost 25% of the entire North American vehicle production. Mexican President Claudia Sheinbaum therefore called on Tuesday for cooperation and dialogue between the two trading partners after Trump announced his plan, which appears to contradict the free trade agreement he signed during his last term. Sheinbaum hinted that Mexico could respond with its own counter-tariffs, while analysts speculated about the risk of a new trade war during Trump's next presidency. The Mexican automotive industry group AMIA expressed readiness and announced to wait for any formal steps to be taken. The North American Free Trade Agreement is up for review in 2026.