Mexico’s President Claudia Sheinbaum said on Friday her administration had a plan to deal with the possible imposition of U.S. tariffs on Mexican crude oil, after President-elect Donald Trump threatened a blanket 25% import tax this week.
“If it were to happen by all means we have a plan, but ideally it would not happen,” Sheinbaum told a morning press conference, adding she was confident Mexico would reach a deal with Trump.
The U.S. is the top destination for Mexican crude exports, and Mexico ranks as the United States’ second biggest supplier after Canada.
Trump’s plan would impose a blanket 25% tariff on goods from both Canada and Mexico, and two sources familiar with the plan told Reuters earlier this week it would not exempt crude oil.
Traders and analysts have predicted that if tariffs are levied, both countries would likely be forced to reduce prices and divert supplies to Asia, which could benefit from cheaper fuel.
(Reporting by Ana Isabel Martinez; Editing by Brendan O’Boyle)