Once again, Mexico’s president Claudia Sheinbaum has adopted a wait-and-see strategy. When US President Donald Trump announced steep tariffs on all cars shipped to the United States – a significant escalation in a global trade war – she stuck to pragmatism and patience.

The president has circled April 2 as the culmination of his "American first" economic policy, which has already shaken markets and started a trade war.

A full-blown tariff war with the US could prove a gut punch for Mexico, which is already battling an economic slowdown. Latin America’s second-biggest economy depends heavily on its commercial relationship with its northern neighbor — its top trading partner by a wide margin.

Mexico is working to carve out an exemption for its critical autos industry after Washington announced tariffs on imported vehicles, the economy minister said on Thursday.

American automakers have relied on labor from neighbors to the north and south since the early days of auto production in North America.

After Trump announced a 25% tariff on cars and auto parts, Sheinbaum emphasized the deep integration of auto sectors in Mexico and the US.

Mexico lowered borrowing costs by a half-point Thursday, as inflation continues to slow and the country’s economy faces the threat of more tariffs from US President Donald Trump.

Mexico replaced China in 2023 as the United States' largest trading partner, with the Latin American country's northern neighbor buying more than 80 percent of its exports. Mexico exports nearly ...

Suppliers to Mexico factories worry about Trump's pending tariffs, especially on the automotive industry, at annual El Paso manufacturing trade show.