Mexico’s Economy Minister Marcelo Ebrard said today that US President-elect Donald Trump’s proposed 25% comprehensive tariffs would cause a loss of 400,000 jobs and slow US growth, while also hitting Mexican exports.

“This is self-undermining,” the Mexican minister said during a news conference, adding that Mexico wants greater regional cooperation and integration instead of a retaliatory tariff war.

Ebrard said the proposed tariffs would hit the world’s top auto exporters particularly hard, particularly Ford, General Motors and Stellantis, and raise vehicle prices for consumers by thousands of dollars.

Mexican President Claudia Sheinbaum yesterday called for dialogue and cooperation between the two trading partners, a day after Donald Trump announced the measure, which appears to contradict the free trade agreement he signed during his first term.

She hinted that Mexico would respond with retaliatory tariffs as analysts speculated about the possibility of a new trade war under the Republican tycoon’s presidency.

Mexico’s auto industry association AMIA said it will prepare for any eventuality and wait to see what official action is taken.