Mexico to impose retaliatory tariffs on US

MEXICO CITY -- Mexico will unveil retaliatory tariffs against the United States on Sunday, President Claudia Sheinbaum announced on Tuesday, condemning the US tariff hike as "unjustified".

Sheinbaum, who had called for "temperance, serenity and patience" ahead of the tariff enforcement, reaffirmed that Mexico would not tolerate subordination or foreign intervention.

She also accused Washington of violating the United States-Mexico-Canada Agreement and rejected White House claims linking her government to organized crime, calling them "offensive and baseless".

Despite the ongoing tensions, Sheinbaum emphasized that Mexico remains open to dialogue while preparing countermeasures to safeguard its economic interests.

The 25-percent US tariffs, which took effect at midnight between Monday and Tuesday, have already impacted Mexico's financial markets. The Mexican peso depreciated nearly 1 percent on Tuesday, reaching 20.90 per US dollar in interbank trading. Analysts attribute the decline to concerns over escalating trade tensions, warning that further US tariff hikes could follow.

With roughly 80 percent of Mexico's exports heading to the United States, analysts warn that the dispute poses significant challenges for both economies.