Mexican President Hints at Retaliation

"Will Put Companies at Risk"

'Tariff Hawk' Jamieson Greer

Trump Nominates as USTR Chief

Assembles Economic Team for Trade War

China Says "No Winner in a Trade War"

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As U.S. President-elect Donald Trump signaled a "tariff bomb" against China, Mexico, and Canada, Mexican President Claudia Sheinbaum hinted at retaliatory tariffs. With Trump pushing a "America First" policy and ramping up tariff pressure, concerns are rising that countermeasures from other countries could spark a global trade war.

Trump nominated Jamieson Greer, former chief of staff to Robert Lighthizer, who served as USTR chief during Trump’s first term, as the new U.S. Trade Representative (USTR). Along with his picks for Treasury and Commerce Secretaries, Trump has now assembled an economic team to wage a trade war using tariffs as leverage. Greer is known as a hardliner on trade policy and has been critical of the platform law that the Korean government sought to introduce.

On the 26th (local time), President Sheinbaum said, "If one side imposes tariffs, the other will respond with more tariffs, and ultimately, it will put companies at risk." This effectively signaled her intention to impose retaliatory tariffs.

President Sheinbaum mentioned U.S. auto companies with manufacturing bases in Mexico. She said, "Among Mexico’s major exporters are General Motors (GM), Stellantis, and Ford, which entered the country 80 years ago," adding, "Why should we impose tariffs that put them at risk? It’s unacceptable." She also emphasized, "This will cause inflation and job losses in both the U.S. and Mexico."

Jamison Greer, nominated by President-elect Donald Trump as the United States Trade Representative (USTR) for the second term administration

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Her remarks came in response to Trump’s announcement the previous day of planned tariff hikes on Mexico, signaling a retaliatory stance. The day before, Trump stated on his social network, Truth Social, that he would sign an executive order on his inauguration day, January 20 next year, imposing an additional 10% tariff on China and 25% tariffs on both Mexico and Canada. He cited insufficient action by Mexico and Canada on illegal immigration and criticized China for its lax control over fentanyl distribution.

China also pushed back against Trump’s tariff threats. Liu Pengyu, spokesperson for the Chinese Embassy in the U.S., said, "No one wins in a trade or tariff war." In contrast, Canadian Prime Minister Justin Trudeau immediately called Trump after the tariff threat, focusing on finding common ground.

As Trump previously indicated, the top targets of his second-term trade policy are expected to be the United States-Mexico-Canada Agreement (USMCA) and China. The U.S., Mexico, and Canada are set to review USMCA implementation in 2026, and Trump’s preemptive announcement of tariff hikes on Mexico and Canada is seen as an attempt to increase pressure. Trump believes USMCA has reduced U.S. manufacturing jobs and serves as a backdoor for Chinese exports to the U.S.

Experts warn that while Trump’s tariff strategy may be intended as "negotiating leverage" to reduce the trade deficit and address national security issues such as illegal immigration, if implemented, it could trigger a domino effect of retaliatory tariffs from trading partners, raising global trade barriers. This would lead to higher global inflation and slower economic growth.

Eswar Prasad, Professor of Trade Policy at Cornell University, said, "Trump's remarks clearly signal the beginning of American protectionism, which will draw many of the United States' trading partners into the same (protectionist) scope," adding, "Tariffs will have a destructive impact not only on the United States but also on international trade."