President Claudia Sheinbaum Pardo said tariffs could cause more inflation and result in job losses for the U.S. and Mexico.

Claudia Sheinbaum, the Mexican president, has vowed to respond to Donald Trump’s threat of a 25 per cent import tax on goods from the country with tariffs of her own.

The president-elect said that he would impose the across-the-board tariffs on Day 1 and that they would stay in place until Canada, Mexico and China halted the flow of drugs and migrants.