Tuesday, July 22, 2025 1:57 pm

Mexico rejects new U.S. tariffs, warns of economic impact: begins negotiations to avoid 30% sanctions

The measure was officially communicated through a letter sent by the U.S. administration to President Claudia Sheinbaum Pardo and was described by Mexico as “unfair treatment.”
The measure was officially communicated through a letter sent by the U.S. administration to President Claudia Sheinbaum Pardo and was described by Mexico as “unfair treatment.”

The Mexican government has expressed its rejection of the United States’ intention to impose a new 30% tariff on Mexican products starting August 1, 2025. The measure was officially communicated through a letter sent by the U.S. administration to President Claudia Sheinbaum Pardo and was described by Mexico as “unfair treatment.”

The letter, signed on behalf of the U.S. president, attributes the decision to Mexico’s alleged failure to curb the trafficking of fentanyl into the U.S.

According to the document, the new tariffs are a response to what U.S. authorities claim is Mexico’s failure to stop drug cartels and its supposed role in turning North America into “a playground for drug trafficking.”

In response, a Mexican delegation comprised of representatives from the Ministries of Economy, Foreign Affairs, Finance, Security, and Energy met on Friday, July 11, in Washington with officials from the U.S. Departments of State, Commerce, and Energy, as well as the National Security Council and the Office of the U.S. Trade Representative.

During the meeting, the Mexican delegation expressed its disagreement with the decision and deemed it a disproportionate measure that threatens bilateral economic stability. “We stated at the meeting that this was unfair treatment and that we disagreed,” the Mexican government said in a statement.

The delegations from both countries agreed to establish a permanent binational working group, whose first mission will be to find a viable alternative before August 1 to prevent the implementation of the new tariffs.

“It is very significant that starting July 11, we established the necessary pathway and forum to resolve any possibility of new tariffs taking effect on August 1. In other words, Mexico has begun negotiations,” the delegation explained.

The U.S. letter also warned that any retaliatory tariffs imposed by Mexico would be met with an additional 30% increase on the proposed tax. Furthermore, it criticized Mexican trade policies, citing the existence of tariff and non-tariff barriers and accusing Mexico of contributing to the U.S. trade deficit.

Mexico defended its position, reiterating that it is actively cooperating with U.S. authorities on security, border control, and migration, and called for continued bilateral dialogue to avoid unilateral measures that could seriously harm workers and businesses in both countries.

The dispute arises in a complex political and economic context for the region and may represent a new point of tension in commercial relations beyond the framework of the United States-Mexico-Canada Agreement (USMCA).

Related: President Sheinbaum Condemns U.S. Immigration Raids: ‘They Are Unjust and Harm the Economy’