MEXICO: Sheinbaum seeks cool-headed response to Trump

Thank you for reading LatinNews' chosen article from the LatinNews Daily - 22 January 2025

On 21 January Mexico’s President Claudia Sheinbaum said that she would respond with a “cool head” and a “calm approach” to the wide range of presidential actions?announced by US President Donald Trump during his inauguration speech in Washington the day before.

Analysis:

President Sheinbaum said it was “important” to respond to the specific text of the presidential actions, which included executive orders (EOs) and memoranda,?rather than to the more general narrative of President Trump’s speech. She added that she would always “defend Mexico above all else”. She said that she was expecting formal contact with Trump administration officials and initial discussion to begin later this week, in a meeting between Mexico’s foreign minister, Juan Ramón de la Fuente, and the newly appointed US Secretary of State Marco Rubio.

• So far Sheinbaum says there are five main actions directly affecting bilateral relations. One notable memorandum?gives Trump the power to raise tariffs on imports of Mexican products into the US. Trump has suggested a 25% tariff could be imposed as early as 1 February.
• Such a move would have a major negative effect on Mexico, 80% of whose exports go to the US. Alfredo Couti?o, the director for Latin America at financial services company Moody’s?Analytics was widely cited by the international media as saying it would reduce Mexican economic growth by a full percentage point this year, bringing it down to 0.6%.
• However, Sheinbaum’s negotiating position may be helped by the close integration between the two economies and the fact that higher import tariffs on Mexican products are likely to increase the US inflation rate.
• Other EOs declare a state of emergency in the US-Mexico border area, allow military action in response to a migrant “invasion” and pave the way for mass deportations. Sheinbaum has recently said Mexican migrant workers make a positive contribution to the US, and that seven out of 10 workers in US agriculture are of Mexican origin.

Looking Ahead: While negotiations are expected to proceed, relations with the new Trump administration will likely remain turbulent. Former Mexican economy minister Ildefonso Guajardo (2012-2018) told the New York Times “Trump 2.0 is going to be a different Trump. His team will be far less balanced in terms of trying to make him aware of the consequences of some decisions”.

If you found today’s article on Mexico’s measured response to Trump’s sweeping policies intriguing, this episode of The LatinNews Podcast is a must-listen.

If you found today’s article on Mexico’s measured response to Trump’s sweeping policies intriguing, this episode of the LatinNews Podcast is a must-listen.

Join Ambassador Tom Shannon as he unpacks Trump’s approach to Latin America—from migration crackdowns and tariffs to the region’s growing strategic importance.

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