Mexico says proposed US tariffs could cost 400,000 American jobs

Mexican Economy Minister Marcelo Ebrard warned on Wednesday of significant job losses and economic repercussions if the U.S. implements a 25% tariff across all imports, as suggested by President-elect Donald Trump.

Ebrard estimated that such tariffs could lead to the loss of 400,000 jobs and decelerate economic growth within the United States, Reuters reported.

He emphasized that the tariffs would particularly affect major automotive companies, such as Ford (NYSE:F ), General Motors (NYSE:GM ), and Stellantis (NYSE:STLA ), which are deeply integrated into cross-border trade.

During a press conference, Ebrard highlighted the negative impact of the proposed tariffs on vehicle prices, projecting that consumers could see increases amounting to thousands of dollars. He called for greater regional cooperation and integration, rather than engaging in a conflict of escalating import taxes.

Mexico, recognized as the top trading partner of the United States, has a significant stake in the automotive industry, which is a crucial manufacturing sector for the country. This industry is responsible for nearly a quarter of all North American vehicle production and primarily exports to the U.S. market.

Following the tariff announcement by Trump, Mexican President Claudia Sheinbaum advocated for dialogue and cooperation between the two nations.

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Source: Investing.com