Mexican President Claudia Sheinbaum threatened to retaliate with her own tariffs against the United States, after President-elect Trump suggested he would impose a 25 percent tax on imported goods from Mexico if her country did not stop the flow of drugs across the border. In remarks on Tuesday, Sheinbaum said that drugs were a U.S. problem, not a Mexican problem, and suggested they could harm U.S. automakers with plants on both sides of the U.S.-Mexico border. “One tariff would be followed by another in response, and so on until we put at risk common businesses,” Sheinbaum said “It is unacceptable and would cause inflation and job losses in Mexico and the United States,” Sheinbaum added. Sheinbaum, however, offered to talk about the issue with the American president-elect. “Dialogue is the best path to achieve understanding, peace and prosperity for our two countries,” Sheinbaum said. “I hope our teams can meet soon.” Sheinbaum also noted that Mexico has taken significant steps to stem the flow of migrants at the border, saying, “Caravans of migrants no longer reach the border.” Trump said on Monday that he will enact tariffs of 25 percent on all Canadian and Mexican goods, and add another 10 percent tariff to all Chinese goods — many of which are already under tariffs imposed by Trump during his first term. Trump said the new tariffs are meant to push all three nations to take stronger efforts to bolster border security and crack down on fentanyl exports to the U.S. “Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!” Trump posted on Truth Social. Trump pledged during his campaign to impose import taxes of 10 percent to 20 percent on all foreign goods, with tariffs of up to 60 percent on Chinese goods. Canada, Mexico and China are the U.S.’s largest trading partners. Trump’s threat comes days after he announced he would nominate investor Scott Bessent as his Treasury secretary. The selection makes Bessent a key player in implementing Trump trade’s agenda and attempting to keep markets calm amid the expected disruption. The Associated Press contributed.