Mexican president Claudia Sheinbaum called the US' 25pc tariff on all Mexican goods unjustified but is withholding details of her government's planned counter-tariffs and other measures until Sunday.
"There is no reason, rationale or justification to support this decision, which will hurt our people and countries," Sheinbaum said, emphasizing that "nobody wins with this decision."
Mexico's government has collaborated closely with the US on drug trafficking, security and migration issues, Sheinbaum said. She highlighted Mexico's efforts to halt the flow of the deadly opioid fentanyl into the US as well as action taken against organized crime.
Mexico's industrial association (Coparmex) said the 25pc tariffs violate the US-Mexico-Canada (USMCA) free trade agreement that was negotiated under Trump's first administration and weaken integration of the economies. This would likely trigger a recession in Mexico and generate inflationary pressures, the group said.
"The measure threatens disruptions in strategic sectors and could lead to the productive disintegration of North America," Coparmex said.
The US tariffs took effect at 12:01am ET (05:01 GMT) on 4 March. The duties have been set at 25pc on all imports from Mexico, 10pc on Canadian energy imports and 25pc on non-energy imports from Canada under an executive order signed in February.
Within minutes of the higher duties taking effect, Beijing announced it would impose new 10pc tariffs on US agricultural products. Canada immediately imposed 25pc tariffs on $30bn of US imports, followed by another $125bn of imports in 21 days' time.
The delay in Mexican counter-tariffs may be a sign that Sheinbaum hopes there is still room to end the measures early.
Tariffs would likely curtail energy trade between the US and Mexico. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe.
Mexico also imports much of its road fuels and LPG from the US. But hitting these goods with retaliatory tariffs would be costly for Mexico and may be unlikely, according to market sources.
