On Tuesday, Mexico’s president responded to President-elect Donald Trump’s threat of imposing tariffs on Mexican goods, cautioning that this move would escalate inflation and adversely impact renowned American automakers such as General Motors and Ford.

Claudia Sheinbaum Pardo kicked off her morning news conference by reading a letter she intends to send to Trump. In it, she challenged his promise to enforce a 25% tariff on Mexican products unless her government curbs the influx of migrants and fentanyl into the U.S.

She implied that Trump might not be aware that her government has adopted a “holistic approach” over the past year to manage the significant number of migrants crossing Mexico to reach the U.S. southern border—asserting that encounters with U.S. Border Patrol have decreased by over 75% since December due to these efforts.

She expressed concern over the economic implications for both nations, particularly for American corporations that depend on their assembly operations in Mexico to provide affordable products.

“One tariff will lead to another, potentially jeopardizing companies that we jointly rely on,” she remarked, subtly hinting that she might impose her own tariffs in retaliation to any Trump tariffs.

“For instance, major Mexican exporters like General Motors, Stellantis, and Ford have been operating in Mexico for 80 years. Why would we impose taxes that jeopardize them? That is not acceptable,” she stated. “Such actions would lead to inflation and job losses for both the United States and Mexico.”

Mexico’s “holistic approach” refers to the country’s recent strict measures against migration.

Since January of this year, Mexico has been apprehending migrants on their way to the U.S. border and repeatedly redirecting them to southern parts of Mexico—an enforcement strategy described by experts as a “carousel” approach.

Analysts suggest that Mexico has sustained these enforcement measures partly due to the Biden-Harris administration opening a legal humanitarian pathway via its CBP One application, allowing migrants to schedule appointments to approach the U.S. border, a process Trump has threatened to eliminate.

Trump has often used threats, including tariffs, to gain advantages in negotiations while pursuing deals beneficial to the U.S.

In her letter to Trump, Sheinbaum mentioned that Mexico perceives the U.S. fentanyl crisis as a public health matter that should primarily be managed within the United States. The Mexican government has long faced challenges in controlling powerful drug cartels that supply drugs to American consumers.

This is a developing story.