Reuters reports:

Mexico’s President Claudia Sheinbaum said on Thursday she and U.S. President-elect Donald Trump had agreed to maintain a good relationship in a friendly phone call that appeared to ease tensions between the top trading partners amid tariff threats.

Sheinbaum struck a more conciliatory tone a day after saying Mexico would retaliate if Trump carries out his pledge to impose a 25% tariff on Mexican and Canadian imports.

“It was a good conversation and we are going to keep having conversations,” Sheinbaum told a morning press conference, in which she said the two had not directly discussed tariffs but talked about the reasons Trump gave for potentially implementing them – illegal migration and fentanyl trafficking.

“It was a very friendly conversation,” Sheinbaum added. “We agreed there would be a good relationship.”

The Mexican peso strengthened close to 1% early on Thursday, after weakening in recent days.

Trump’s proposed tariffs would appear to contravene the U.S.-Mexico-Canada free-trade pact, which Trump signed during his first term and is up for review in 2026.

Following Wednesday’s call, Trump said on social-media platform Truth Social that Sheinbaum had “agreed to stop migration through Mexico, and into the United States, effectively closing our Southern Border.”

Sheinbaum appeared to refute this on X, saying they had discussed Mexico’s strategies to curtail migration into the U.S. but Mexico’s policy was “not to close borders, but to build bridges between governments and their peoples.”

Addressing the apparent discrepancy, Sheinbaum told reporters it came down to different communication styles.

“I can assure you we would never close the Mexico-U.S. border.”

Mexico has in recent months increased enforcement significantly, helping keep down numbers of migrants arriving at the U.S. border.

Sheinbaum said Mexican authorities were attending to a caravan near Pijijiapan in southern Chiapas state, which immigration authorities estimate at some 800 people. “This caravan is not going to reach the north,” she said.

Some analysts have said they believe the tariffs proposal – which they expect would push up U.S. consumer prices – is a negotiation tactic ahead of the USMCA review.

Mexico accounted for 15.9% of U.S. trade in the first nine months of this year, followed by Canada at 14.4% and China at 10.8%. Trump also suggested 25% tariffs on Canada and “an additional 10% tariff, above any additional tariffs” on China. [Continue reading…]

Reuters also reports:

Mexican President Claudia Sheinbaum said on Wednesday Mexico would retaliate if U.S. President-elect Donald Trump followed through with his proposed 25% across-the-board tariff, a move her government warned could kill 400,000 U.S. jobs and drive up prices for U.S. consumers.

“If there are U.S. tariffs, Mexico would also raise tariffs,” Sheinbaum said during a press conference, in her clearest statement yet that the country was preparing possible retaliatory trade measures against its top trade partner.

Mexican Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, called for more regional cooperation and integration instead of a war of retaliatory import taxes. [Continue reading…]