Mexico seeks to avoid retaliatory tariffs against US, but not ruling them out

By Raul Cortes and Kylie Madry

MEXICO CITY (Reuters) -Mexican President Claudia Sheinbaum said on Monday her government would like to avoid imposing tariffs on the United States in response to President Donald Trump's sweeping tariff plans, though she said they could not be ruled out.

Mexico, which ships nearly 80% of its exports to the United States, was not included on Trump's list of global, across-the-board tariffs announced on nations last week, which Sheinbaum hailed as a major success.

Still, Mexico is subject to Trump's previously imposed tariffs of 25% on steel, aluminum and automobiles, as well as on goods that do not comply with the regional USMCA trade pact.

"As much as possible, we would like to avoid imposing reciprocal tariffs," Sheinbaum said in a morning press conference.

She added that Economy Minister Marcelo Ebrard would travel to Washington to meet with U.S. officials, as he has done in recent weeks.

Sheinbaum said slapping a retaliatory tariff of 25% on U.S. steel and aluminum shipments "would represent price increases in Mexico."

"We aren't ruling it out, but we prefer to continue with dialogue," she added.

Mexican officials have said U.S. steel and aluminum tariffs are unjustified as Mexico imports more in the sector from the U.S. than it exports to the U.S.

The nation's peso and main stock index weakened more than 1% by mid-morning on Monday, part of a market plunge worldwide as Trump threatened to further increase tariffs on China.

(Reporting by Raul Cortes and Kylie Madry; Editing by Anthony Esposito and Rod Nickel)