Mexican leader confronts Trump over new trade threats - what's at stake?

President-elect Trump announced wide-ranging tariffs against Mexico and Canada causing immediate back-and-forth between north-american leaders. The proposed 25% tax aims to pressure neighbors on drug and border issues

Claudia Sheinbaum sent a direct message to Trump warning about cross-border economic damage: inflation jobs and business ties are at risk. She plans to reach-out to both Trump and Justin Trudeau for talks

Mexicoʼs position as US number-one trade partner (with 15.8% share) makes this situation extra-complex. The auto industry which sends almost 80% of its mexico-made vehicles north would face big problems

• General Motors plants affected
• Ford production impacted
• Overall car sector represents 35% of exports
• One-fourth of North American cars made in Mexico

The peso dropped 2% after trumps announcement (continuing its half-year down trend). Some money-experts think its just a negotiation trick; others expect a real trade-war coming up

Sheinbaum pointed out that Mexico doesnt make guns or use synthetic drugs but deals with crime linked to US demand. She noted progress on border control: less migrants arriving fewer caravans and better anti-drug efforts

The Mexican leader stayed confident about finding common ground but mentioned plans to boost trade with Europe and Latin America. These tariffs might break rules of the north-american trade deal signed back in 2020

We are not only looking to the north‚ but also to the south and to the European continent; Mexico is strong and we will always come out on top