Mexico will impose retaliatory tariffs on US goods

Mexico's President Claudia Sheinbaum (Courtesy: Reuters photo)

Mexico President Claudia Sheinbaum said Tuesday that Mexico will respond to 25% tariffs imposed by the United States with its own retaliatory tariffs on US goods.

Sheinbaum said she will announce the products Mexico will target on Sunday in a public event in Mexico City's central plaza, perhaps indicating Mexico still hopes to de-escalate the trade war set off by US President Donald Trump.

"There is no motive or reason, nor justification that supports this decision that will affect our people and our nations," she said.

The tariffs that had been threatened by President Donald Trump against Canada and Mexico went into effect Tuesday ratcheting up the risk of retaliations from the United States' North American allies.

Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products subject to 10% import duties.

Already on Tuesday, in reaction to tariffs on China, Beijing announced additional tariffs of up to 15% on imports of key US farm products, including chicken, pork, soy and beef, and expanded controls on doing business with key US companies.

China's new tariffs will take effect starting March 10. They follow US President Donald Trump's order to raise tariffs on imports of Chinese products to 20% across the board. Those took effect on Tuesday, along with 25% tariffs on imports from Canada and Mexico.