Mexican President "First of all trade with the U.S. and Canada...There will be no tariff war with the U.S.

Mexico's president, under threat of a "tariff bomb" from the second Trump administration, which will launch in January next year, says there will be no tariff war with the United States.President Claudia Sheinbaum
told a regular news conference that Mexico has prioritized these countries in trade because they have agreements with the United States and Canada, stressing that they have been speaking openly to everyone.

President Sheinbaum, who spoke to U.S. President-elect Trump the day before, said, "We did not discuss tariffs in detail," adding, "We talked about pending issues such as migration and drug fentanyl trafficking."

He also said he agreed that there would be good relations between Trump and the two countries, stressing that "he expects no tariff war potentially."

At the news conference, President Sheinbaum also said he had "no confirmation of a firm project proposal from the Chinese automaker to set up a factory in Mexico" and that "no firm investment has been made regarding Chinese electric vehicles."

Although President Sheinbaum did not specify the name of the company, it appears to be a reference to Chinese electric vehicle maker BYD.

Villadi, who dreams of becoming the world's largest electric vehicle maker, is said to have been searching for a factory site in Mexico, which has emerged as an automobile production base in North America.Some analysts say that the Mexican government cannot welcome the establishment of a BYD plant as the trade environment in the region shows signs of rapid changes, including the possibility of imposing a 25% "bomb tariff" on Mexico after Trump's inauguration in January next year.