Synopsis
Mexican President Claudia Sheinbaum asserts the strength of Mexico's economy against the backdrop of newly imposed 25% US tariffs. She emphasizes the importance of domestic growth and urges calm among citizens while preparing to discuss the tariffs with US President Trump.Key Takeaways
- Mexico's economy is resilient with substantial reserves.
- Sheinbaum encourages calm amid US tariffs.
- Domestic growth is supported by consumption and public investment.
- US consumers will face higher prices due to tariffs.
- Economic integration between Mexico and the US is vital.
Mexico City, March 5 (NationPress) The economy of Mexico is "strong" and possesses ample reserves to endure the 25 percent tariffs on Mexican goods that the US implemented starting Tuesday, stated Mexican President Claudia Sheinbaum.
The President urged Mexicans to maintain composure in light of the recent US trade action, asserting that her administration will safeguard Mexico's economy through various strategies to protect the national industry without entering a trade war, as reported by Xinhua.
During a press conference at the National Palace in Mexico City on Tuesday, Sheinbaum recognized that the tariffs would have repercussions but emphasized that internal growth is fueled by domestic consumption, job creation through public investment, increases in the minimum wage, and social welfare initiatives.
She reiterated that US consumers would bear the brunt of President Donald Trump's tariff decision on products from Mexico and Canada, as this would lead to higher prices for various goods, including cars, computers, refrigerators, and monitors.
On Thursday, March 6, Sheinbaum announced her intention to have a phone conversation with Trump to discuss the possibility of lifting the 25 percent tariff that took effect on Tuesday.
"Mexico exports a significant portion of what Americans consume, especially cars, but this export is linked to commercial and productive integration," she added.
"Complete cars are not solely manufactured here and sent to the United States; instead, auto parts are produced partially here, then they go to the US, return, and are assembled either here or in the United States," she explained.
Sheinbaum noted that Mexico and the US have a "very important economic integration" that has been fortified over the past 40 years.
The President expressed her confidence that the tariff issue could be resolved prior to Mexico's announcement regarding countermeasures against the US, which, while not intended to initiate an "economic confrontation," will affect both nations.
"What is produced here will cost the United States 25 percent more when it enters the US; if we impose the same tax on the return, it will cost another 25 percent to bring it back, and to send it again, another 25 percent," argued Sheinbaum, indicating that this would elevate product costs.
Rather than imposing tariffs, regional countries should encourage "greater economic integration" because "together we grow stronger," she concluded.
The President called upon Mexicans to join a rally on Sunday, March 9, at Mexico City's central plaza, where she intends to unveil measures of public interest.
