Mexico warns that the US will lose 400,000 jobs if Trump follows through on his threat to apply tariffs

The Mexican Government warned this Wednesday of the potential loss of 400,000 jobs in the United States, as well as inflationfor example an increase of $3,000 in the price of a truck, if the president-elect of the United States, Donald Trump, imposes 25% tariffs on Mexico.

“In the end these taxes will affect the consumer in the US, but also companies, and around 400,000 jobs in the United States would be lost.. Where do we get the figure from? Those jobs would be lost and I consulted that with the different companies,” declared the Secretary of Economy, Marcelo Ebrard, at a conference.

The person in charge of implementing Mexican trade policy warned of the effects in the United States of Trump’s measures, who on Monday announced that one of his first executive orders will be to impose 25% tariffs on “all products” from Mexico and Canada. until the invasion of migrants and drugs is “stopped”.

The official stated at the National Palace that The main companies affected would be the American automobile companies General Motors, Stellantis and Fordin addition to the fact that total imports in the United States represent 12.7% of its gross domestic product (GDP).

“It is a tax that primarily affects this technological industrial complex, whose main exponents are these three groups from the United States themselves, that is, it is a shot in the foot,” he considered.

Ebrard defended the Treaty between Mexico, the United States and Canada (T-MEC), in force since 2020 and signed during Trump’s first presidency (2017-2021).

The trade exchange of the three North American countries totaled 1,776.5 billion dollars from January to September 2024the equivalent of 30% of world GDP, detailed the secretary.

Therefore, he advanced that Mexico’s proposal to Trump’s transition team will be to strengthen “regional stability”“shared prosperity” with well-paying jobs and infrastructure investment, and boosting “global competitiveness” by optimizing supply chains in North America.

“So on the table there are two alternatives: We can fragment and divide ourselves with accusations and tariffs (tariffs) – we can do that if we want, because they put one tariff on us and we put anotherand Canada puts another one, it will be a never-ending division – or we build together a strong and competitive region,” he argued.

The secretary asserted that he has received the support of companies in the aeronautical, agricultural and financial sectors.

He also indicated that he seeks to accelerate the final endorsement of the renewed free trade agreement with the European Union (EU) and a new one with Brazil.

With information from EFE.

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