Carlos Slim, Mexico’s richest man, advises Trump: “tariffs do not solve problems”
Returning US President, Donald Trump, is implementing at speed his controversial plans, many of which are rubbing former allies up the wrong way.
Mexican billionaire Carlos Slim, one of the world’s wealthiest individuals and a titan of Latin American business, has issued a stark warning about the potential fallout of US tariffs on Mexican imports. Speaking at a recent press conference, Slim argued that such tariffs would do little to boost the American economy and could instead trigger a surge in inflation, hurting consumers on both sides of the border.
Slim on Trump tariffs: “it’s part of a negotiation”
Slim, who owns major companies like América Móvil and Grupo Carso, dismissed the likelihood of Donald Trump following through on his threat to impose a 25% tariff on Mexican goods. “It’s part of a negotiation,” Slim said. “These tariffs don’t solve the problems. It’s unimaginable that everything the US imports from Mexico – and it’s a lot – would be subject to a 25% tariff. It wouldn’t work.”
The Mexican tycoon emphasized that such sweeping tariffs would disrupt trade flows, raise prices for American consumers, and strain the US economy. Instead of resorting to tariffs, Slim believes the US should focus on cutting unnecessary expenses and redirecting resources toward productive investments.
Trump’s strategy to dominate China
According to Slim, Trump’s tariff threats are part of a broader strategy to maintain economic dominance over China. However, Slim argues that tariffs are not the answer. “I think Trump is already addressing the tough issues, like the country’s excessive spending,” he said. “He needs to determine what can be produced and what should be protected.”
Slim’s comments come at a critical moment in US-Mexico relations. Following an agreement between Trump and Mexican President Claudia Sheinbaum, tariffs on Mexican imports have been postponed until March 4. By then, the two countries will reassess the situation based on progress in their ongoing negotiations.
Slim cautioned that the back-and-forth over tariffs is creating uncertainty, which could have significant implications for financial markets. While he believes some targeted tariffs may ultimately be imposed, he doubts they will be applied across the board. Still, even limited tariffs could disrupt supply chains, increase costs for businesses, and ripple through the global economy.
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