President Claudia Sheinbaum suggested Tuesday that Mexico could retaliate with tariffs of its own, after U.S. President-elect Donald Trump threatened to impose 25% import duties on Mexican goods if the country doesn't stop the flow of drugs and migrants across the border.

By Sarah Morland and Brendan O'Boyle MEXICO CITY (Reuters) -Mexican President Claudia Sheinbaum on Tuesday warned U.S. President-elect Donald Trump of dire economic consequences for both countries from tariffs and suggested possible retaliation following his threat of across-the-board tariffs of 25% on Mexico and Canada.

Trump’s proposal to impose a 25% tariff on Mexico would worsen inflation and result in job losses, Mexican President Claudia Sheinbaum said.