Mexico could seek other trade partners after US tariffs, president says

Mexico's government may look for other trade partners, the nation's president said on Wednesday, after the United States slapped tariffs on its southern neighbor.

President Claudia Sheinbaum said that Mexico could shift trade alliances "if necessary," referring to the possible continuation of the tariffs.

U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with fresh duties on Chinese goods, standing to seriously alter supply chains and long-standing trade partnerships.

Trump and Canadian Prime Minister Justin Trudeau are scheduled to speak on Wednesday, a source told Reuters. Sheinbaum is tentatively set to have a phone call of her own on Thursday with the U.S. leader about the tariffs, she said in her daily morning press conference.

If the tariffs continue after that, Mexico "will reach out to Canada and other nations," Sheinbaum said.

"It is a very definitive moment for Mexico," Sheinbaum said. "Our economy is fine, but there will be no submission. ... Depending on the circumstances, we will look to Canada and other countries."

The Mexican peso slightly strengthened by 0.84% on Wednesday to 20.41 per U.S. dollar.

In an appeal to Mexican national pride, Sheinbaum has called for a rally on Sunday in Mexico City's historic Zocalo square where she will outline her response to the United States, which she said would include retaliatory tariffs.

U.S. Commerce Secretary Howard Lutnick said on Wednesday that an announcement on tariffs could come later in the day, hinting at possible relief for some sectors such as automobiles.

The auto sector stands to take a heavy hit from tariffs, with parts typically crossing the border several times as cars are assembled. The United States imported $181.4 billion in autos and auto parts from Mexico in 2024, representing nearly 10% of Mexico's economy, according to Goldman Sachs.