Saudi Arabia’s ‘vision and generosity are very well-suited’ to WHO’s work on global health issues, says WHO Foundation CEO

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Specialist surgeons work to separate conjoined twins at a hospital in Riyadh on May 15, 2022. (KSrelief handout picture))
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Medics working for KSrelief conducting eye examinations in Bangladesh. (SPA)
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Updated 27 March 2023
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Saudi Arabia’s ‘vision and generosity are very well-suited’ to WHO’s work on global health issues, says WHO Foundation CEO

  • Anil Soni says Middle East’s humanitarian and health crises need both ‘immediate assistance and long-term solutions’
  • Praises aid agency KSrelief’s ‘incredible model’ and Saudi Vision 2030’s focus on nonprofit efforts and philanthropy

LONDON: The WHO Foundation was set up in 2020 during the COVID-19 pandemic to marshal new resources from philanthropists, foundations, businesses, and individuals to support the World Health Organization’s mission. 

Both WHO, which is a specialized agency of the UN, and the WHO Foundation are based in Geneva but the latter is a non-profit, grant-making body that is legally independent from WHO.

Anil Soni joined as CEO with a 20-year track record of improving healthcare in poorer countries and a goal to raise $1 billion. He told Arab News, in a written interview, how his foundation supports and complements WHO’s efforts while respecting its intergovernmental nature.




WHO Foundation CEO Anil Soni. (Supplied)

Arab News: Can you describe how the WHO Foundation arranges support from donors and how the money is spent by WHO?

Anil Soni: The WHO Foundation’s purpose is to be a bridge between the lifesaving and vital work of WHO and the various communities that can help power that work through their engagement, partnership and of course, generosity.

We are raising resources from multiple partners from the private sector and beyond to help WHO deliver lifesaving medicines and supplies to people in need.

World challenges such as the Turkiye-Syria earthquakes, the food crisis in the Sahel and the Horn of Africa and the conflict in Ukraine are great examples of where we are facing crises that affect all of us and have to come together.

Such adversities cannot be tackled by any single sector alone. WHO is part of several international organizations of the United Nations, but the UN and the governments are not enough. We have to make sure we are collaborating with individuals and businesses too. 




Photo taken on June 10, 2012 shows Dr. Omar Saleh [2-L], the emergency coordinator for WHO in Somalia, attending to a young patient at a hospital in the Hudur region. (AFP file)

All contributions matter, even small ones, as these add up to enabling life-changing initiatives. For example, during the COVID-19 pandemic, we had a campaign called “Go Give One.” Five dollars bought a vaccine, the same amount of money that could go into buying a cup of coffee. Businesses and philanthropists were donating millions of dollars, and that’s important, but every single contribution counts.

In terms of how we mobilize the money, we do it in several ways. We are brokering catalytic, transformative ways of engaging with philanthropists and businesses looking for opportunities to contribute to change and be part of the solution.

In the case of the earthquakes that affected millions and led to more than 50,000 life losses (the biggest death toll in over a decade since the Haiti earthquake), WHO continues to procure and quickly deliver lifesaving tools in Turkiye and Syria.

One of our closest partners is Spotify. Spotify created an opportunity for its listeners to contribute to the relief efforts in Turkiye and Syria by helping direct individuals (Spotify users) to our donation webpage.

Each donation directly supports relief efforts for those affected, including mental health services, physical rehabilitation, medicines, and other tools or commodities needed to reduce the risk or respond to communicable diseases from poor access to hygiene, clean water, and health services.

Q: Aid agencies have been criticized over the perception of unfair aid distribution and assistance in earthquake-hit areas, particularly in relation to Syria and its different areas of control. How can aid in this complicated context be made more equitable? 

A: Often, people at risk and in need are in environments that are the subject of intense political debate or literally in the crossfire of conflict. This is one of the reasons why WHO’s work is so important, as it operates everywhere. It is a UN agency that is itself a collaboration between member states. Hence, all the world’s governments participate in the operations and governance of WHO.

INNUMBERS

501,000 People who died from tuberculosis in Africa in 2021.

43,000 Excess deaths caused by hunger and poor health in Somalia in 2022.

57,300 Deaths in Turkiye and Syria caused by Feb. 6 earthquakes.

Furthermore, WHO’s emergency teams are in all regions of the world, so they continue to operate in Syria through years of conflict and are one of the few that have done so. It is crucial not to be biased against people’s needs because of the nature of a political situation or conflict. Quite the opposite, this is about healthcare, delivering medical services, and doctors whose job is not to deal with politics but to ensure people in need receive adequate healthcare.

I was really inspired by Dr. Tedros (Adhanom Ghebreyesus), the head of WHO, who visited Syria last month. He was the first UN principal to enter northwest Syria in over a decade because of the conflict. In the first hours after the earthquakes, WHO distributed 183 metric tons of supplies to more than 200 health facilities inside northwest Syria from partner warehouses in Azaz and Idlib.




World Health Organization chief Tedros Adhanom Ghebreyesus (C) visits a shelter for people displaced by the disaster in Kafr Lusin near the Turkish border on March 1, 2023, during his first ever visit to rebel-held areas of war-ravaged Syria. (AFP)

Following this, WHO delivered 297 metric tons of emergency supplies and essential medicines to earthquake-affected areas of the country, allowing 3,705,000 treatments, including ones for trauma management, diabetes, and pneumonia.

Q: What are the main healthcare challenges facing the Middle East and North Africa region? How can mobilizing additional funding for WHO address these challenges? Can this go beyond monetary assistance to address the structural issues behind health inequality?

A: That’s the aspiration because otherwise, we will continue to face these emergencies and inequitable needs. The MENA region is striking at the moment because it is home to a number of simultaneous humanitarian and health crises that need both immediate assistance and long-term solutions.

Events such as the earthquakes in Turkiye and Syria, the conflict in Syria and the cholera outbreaks in Lebanon and Syria are acute and products of climate change or long-term dynamics that require sustained response and commitment.

The region now more than ever is uniquely positioned to support with its burgeoning economic prosperity among residents and the public and private sectors. It is vital to raise the necessary resources and awareness of how every single contribution plays a huge role in tackling humanitarian crises, which is what we do at the WHO Foundation.




A Syrian medic administers COVID-19 vaccine provided by the WHO and UNICEF to people in Syria's northeastern city of Qamishli on May 24, 2021. (AFP)

But equally important is the need to address the structural issues and the systemic reasons behind inequalities and fully leverage the resources of some of our partners. For example, we’re not just looking to our partners as a source of capital. We are also looking into how they can help us mobilize humanitarian efforts through their platform, talent, ability and own supplies.

I mentioned Spotify earlier. They helped us engage millions of listeners to gather resources to build up local health systems and become better prepared for emergency response.

So, part of what we’re trying to do in terms of raising those resources and brokering these partnerships is not just responding in the moment of an emergency but also ensuring that the underlying health systems are being built up, that there are community healthcare workers and adequate supplies.

We think about long-term financing and building systems strong enough to allow us to be agile in our response to an emergency or even help predict future crises (that is, potential disease outbreaks).

Q: How is the WHO Foundation helping to improve global preparedness? Does this apply merely to COVID-19 and readiness for future pandemics or does it include other emerging health threats (environmental, nutritional, etc.)? How can states like Saudi Arabia prepare?

A: WHO and the WHO Foundation work collaboratively and proactively to improve preparedness. For example, we are setting up emergency hubs in Kenya, Senegal, and South Africa to bolster health security across the African continent. This helps ensure lifesaving medical supplies and equipment are shipped within 24-48 hours of the declaration of an emergency, reducing deployment time by up to 60 days.




WHO Foundation CEO Anil Soni in Kenya. (Supplied). 

These regional emergency hubs work closely and cooperatively with governments for a joint emergency response, prepositioning of medical supplies and equipment, training facilities, and infectious diseases monitoring. But these emergency hubs are not limited to tending to diseases. They also help boost living quality, such as ensuring a continued supply of clean water to avoid risks of waterborne diseases like cholera.

WHO is always looking ahead, whether that’s analyzing trends in climate change or forecasting geopolitical outcomes, to anticipate better where our support will be most needed. We also work with governments and health leaders to help them navigate health crises their nation may have yet to experience.

Regarding Saudi Arabia, the vision and generosity of the Kingdom and its close collaboration with businesses and its people are very well-suited to this. As I understand it, particularly in the context of Vision 2030, Saudi Arabia is addressing how it can ensure that they recognize the interconnectedness between our well-being, the well-being of others, and the well-being of our neighbors. There’s a term in South Africa called “Ubuntu,” which means “I am because you are.”

It essentially recognizes interconnectedness and that the only way I will prosper is if I’m making sure that I’m being thoughtful about your needs because we depend on each other. I think this resonates with Saudi Arabia’s leadership role in the region and that supporting countries and communities inside and outside the Kingdom’s borders is essential to the welfare of the people in Saudi Arabia itself. 

Q: What is your opinion of Saudi Vision 2030’s Health Sector Transformation Program? Do you believe its focus on equitable and accessible health care coincides with the WHO Foundation’s own mission and values?

A: Similarly to Saudi Arabia’s Health Sector Transformation Program, the WHO Foundation believes in equitable and accessible healthcare. To speak more broadly in terms of the Vision 2030, there’s also a focus on nonprofit efforts and a culture of strategic philanthropy.




Infographic courtesy of Saudi Arabia's Vision2030 site

Even though there’s the government’s leadership, the rest of the nation is encouraged to contribute, including businesses and individuals, to addressing national challenges and fostering development. This idea of everyone playing a role in achieving goals is consistent with our mission at the WHO Foundation. 

We’ve had to react to so much these last years, such as a pandemic that much of the world didn’t predict, the effects of climate change even though it’s been brewing over time, and natural disasters that have periodicity and history.

If we look back, earthquakes and tsunamis have caused so much damage over the decades, and the question is, are we preparing for such catastrophic events? If all we’re doing is reacting and not preparing, the effects will be greater, and the loss will be unnecessary.

I say all of that because, when a government like Saudi Arabia works backward all the way from 2030, proactively and not just reactively, it sets an important lesson for all of us and demonstrates how much progress we could make by simply being prepared.




Displaced Yemenis receive medical treatment at a health clinic run by Saudi Arabia's KSrelief in Yemen's war-ravaged western province of Hodeida, on February 24, 2021. (AFP)

Q: What is the WHO Foundation’s assessment of Saudi Arabia’s role in supporting nations in the wider region, including the medical interventions of KSrelief? Does the Kingdom have a greater role to play in future humanitarian and disaster responses?

A: KSrelief is an incredible model, and we’re learning a lot from the existing collaboration between KSrelief, WHO and other international humanitarian partners. The generosity of KSrelief has been tremendous, but it’s not just about the number of dollars; they’re also thoughtful about the quality of aid and the policy frameworks necessary to ensure the positive impact intended. We want to replicate and build from this type of partnership and engagement.

Q: In what ways does the WHO Foundation want to mobilize greater private capital and public-private partnerships to advance the mission of WHO in Saudi Arabia and the wider region?

A: A part of what we are trying to do at the WHO Foundation is help stakeholders in Saudi and other countries in the region understand the critical role WHO plays. Though it was prominent throughout the COVID-19 pandemic, WHO is not just about responding to the pandemic; it responds to various emergencies; it’s operating in settings other agencies are not; it’s thinking and preparing for future emergencies.

Last month, WHO released its Global Health Emergency Appeals, enhancing preparedness and response to 54 ongoing health emergencies. And, of course, there’s all the normative work of WHO, the degree to which it acts as the world’s FDA, CDC, and NIH. 




Yemeni children receive treatment at a hospital in the capital Sanaa on October 11, 2016 during a cholera outbreak confirmed by the World Heath Organization. (AFP)

We hope that by raising awareness and amplifying the understanding of WHO and its initiatives, we can engage the tremendous generosity of the region and mobilize regional stakeholders to help WHO achieve its humanitarian goals.

Q: Philanthropy is a key tenet of Islam. What role can zakat play in the WHO Foundation’s fundraising work in the region?

A: I’ve been so blessed to have had the opportunity of getting to know different communities and faiths around the world and be inspired by different ones. Zakat is very inspiring and something I practice in my life. Even though I am a Hindu and an American, I allocate 5 percent of my income after tax to charity and to civic causes every year.

While zakat and sadaqah are particular elements of the Muslim faith, there’s great consistency between zakat and sadaqah and tithing. This culture of giving presents a tremendous opportunity to fund gaps in global humanitarian health crises and ensure help is directed to where it is most needed. I think the tradition of giving in faiths can inspire greater philanthropy, generosity, and collaboration in the future.

 


‘Anti-woke’ Americans hail death of DEI as another domino topples

Updated 13 sec ago
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‘Anti-woke’ Americans hail death of DEI as another domino topples

WASHINGTON: America’s largest private employer, Walmart, is the latest name to join a list of US businesses and institutions rethinking programs to bolster minority groups as support for progressive policies erodes.
Walmart said it will phase out the terms “diversity, equity and inclusion” (DEI) and “Latinx,” end supplier diversity programs, shutter a racial equity center and pull out of a prominent gay rights index.
The announcement comes in the wake of similar moves by a string of prestige brands — from Ford, John Deere and Lowe’s to Harley-Davidson and Jack Daniel’s — reflecting a backlash against so-called political correctness in American public life.
The rightward shift is credited in part for populist Donald Trump’s White House comeback and for laying the groundwork for a 2023 Supreme Court ruling ending affirmative action in college admissions.
DEI initiatives aim to right historical discrimination but conservatives have long criticized them as unfairly targeting white people, particularly men, as well as being performative “virtue-signaling.”
Anti-DEI activist Robby Starbuck, who lobbied Walmart before its announcement, celebrated the “biggest win yet for our movement to end wokeness in corporate America” and noted that the company’s stock had risen 2.1 percent.
“Our movement is a force in the market. Go woke, go broke actually has meaning now,” he posted on X.


Starbuck, 35, told AFP in an interview before Trump’s November 5 victory over Democrat Kamala Harris — who was criticized for previous “woke” policy positions — that ordinary Americans were sick of inclusivity and diversity policies at US companies.
“People are entitled to their views, and we need to have a system that creates equal footing for everybody and doesn’t force any one ideology down everybody’s throats,” he said.
Emboldened by Trump’s campaign pledges to end “wokeness,” conservative groups have been filing numerous lawsuits targeting corporate and federal programs aimed at elevating minorities and women.
Trump himself focused mostly on political correctness that he says is infecting the nation’s classrooms, promising executive orders to cut federal funding schools pushing critical race theory and “transgender insanity.”
The president-elect has surrounded himself with anti-woke allies of all stripes, including his incoming deputy policy chief Stephen Miller, whose America First Legal group has targeted corporate diversity.
The military has been the main target of anti-woke crusaders in the US Congress, who argue that racial justice education and an obsession with climate change have made the troops go soft and driven a recruitment slump.
Republican lawmakers who spent much of the last congressional session locked in a war with Pentagon leaders on political-correctness were rewarded with Trump’s pick to lead the defense department’s workforce of three million — anti-DEI Fox News host Pete Hegseth.


Conservative activists hailed 2023 as a landmark year in America’s never-ending culture wars, when the conservative-majority Supreme Court ended affirmative action in university admissions, reversing a major gain of the 1960s Civil Rights Movement.
Conservative groups pounced on the ruling to fight all manner of diversity programs in court.
And in March, the University of Florida ended DEI programs and related jobs as part of Republican Governor Ron DeSantis’s offensive against “woke ideology” — joining campuses in around a dozen other states.
Workers are divided on the merits of DEI, with a slowly-growing share saying their company pays too much attention to the issue — 19 percent in an October Pew Research Center poll compared with 14 percent in the same survey in February 2023.
But a new poll of 1,300 employees from business think tank The Conference Board, showed a robust 58 percent indicating that their organization devotes the appropriate level of effort on DEI.
“Leaders should focus on what really matters for their workforce amid the noise, as these initiatives are crucial for attracting and retaining current and future talent,” said Allan Schweyer, the group’s principal Researcher for human capital.

Global operation seizes 1,400 tons of drugs, unearths new Pacific trafficking route

Updated 15 min 17 sec ago
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Global operation seizes 1,400 tons of drugs, unearths new Pacific trafficking route

  • More than 1,400 tons of drugs seized, over 400 criminals arrested in global operation in October and November
  • Operation “Orion” involved the US, Brazil, Spain, Netherlands and other nations, as well as multiple international organizations
  • The seizure deprived drug cartels of more than $8.4 billion dollars, according to the Colombian Navy

BOGOTA: Authorities from dozens of countries seized 225 metric tons of cocaine in a six-week mega-operation where they unearthed a new Pacific trafficking route from South America to Australia, the Colombian Navy said Wednesday.
The latest phase of global naval operation “Orion” resulted in the seizure of more than 1,400 tons of drugs, including 225 tons of cocaine and 128 tons of marijuana, navy official Orlando Enrique Grisales told reporters.
More than 400 people were arrested in the operation targeting oceans, coasts, rivers and ports around the globe in October and November.
The massive bust involved the security agencies of the United States, Brazil, Spain, the Netherlands and several other nations, as well as multiple international organizations.
The seizure deprived drug cartels of more than $8.4 billion dollars, according to a Navy statement.
Grisales said officials also seized a semisubmersible wood-and-fiber glass vessel on its way to Australia with five tons of Colombian cocaine.
This was the third such vessel discovered in this area, revealing a “new route” of trafficking with sophisticated boats that can cover the distance of some 10,000 miles without needing to refuel.
A kilogram of cocaine is sold for up to $240,000 in Australia, said Grisales — about six times more than the price in the United States.
“It is a route that is becoming increasingly profitable because prices are much higher in Australia,” a security source told AFP.
“Initially, these boats were used mainly to take the drugs out of the country and move them off the coast of Colombia and then transfer them to ships,” added the source.
“It has been found that these semisubmersibles, sometimes even submersibles, are now increasingly sophisticated, with very fine engineering.”
The operation also uncovered previously-unknown alliances between cartels from Mexico, Brazil, Colombia, Ecuador and Peru with groups from Europe and Oceania.
“It is not just a pyramid structure as the cartels once were. Today they are organized crime networks joined together,” said Grisales.
Colombia is the world’s biggest cocaine producer and exporter, mainly to the United States and Europe.
Last year, the South American country set a new record for cocaine production and cultivation of the coca leaf it is made from.


Under tariff threat, US wholesaler warns: ‘People will pay’

Updated 28 November 2024
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Under tariff threat, US wholesaler warns: ‘People will pay’

  • No matter what happens in January, retailer Melquiades Flores says he has no option but to keep importing produce from Mexico
  • The tomato-growing season in California lasts four months. The rest of the year, he gets the produce from Mexico

LOS ANGELES: While most of Los Angeles sleeps, 58-year-old Melquiades Flores starts his day at 1 a.m., supervising the unloading of produce at M&M Tomatoes and Chile Company, the wholesaler he started in 2019.
But the business that Flores hopes to pass to his children one day is bracing for a disruption.
US President-elect Donald Trump has pledged to impose a 25 percent tariff on all imports from Mexico and Canada when he takes office on Jan. 20, plus an additional 10 percent tariff on Chinese goods.
“Produce of Mexico” is stamped on almost all the boxes of tomatoes and chilies that arrive at Flores’ downtown warehouse, destined for homes, hotels and restaurant kitchens across the city.
“People will have to pay a higher price. Whatever they charge us, we will pass on to the consumer,” Flores said from his section of the larger complex, the Los Angeles Wholesale Produce Market.
No matter what happens in January, Flores says he has no option but to keep importing produce from Mexico. The tomato-growing season in California lasts four months, from August to November, he says. The rest of the year, he gets the produce from the Mexican states of Sinaloa, Baja California and Sonora.
His team stacks boxes upon boxes of tomatoes in every size and shade of red, plus some shiny green ones for making zesty tomatillo sauce.
“Any tariff is an added tax that impacts all of us, including those who buy a pound, two pounds, or a thousand or 10,000 pounds,” said Flores, who has lived in Los Angeles for 40 years and is originally from the Mexican state of Morelos.
Trump has pronounced his love of tariffs, presumably for raising revenue and protecting US industries against imports, but he avoids speaking about the inflationary effect or the impact of potential retaliation from the United States’ top three trading partners.
Officials from Mexico, Canada and China and major industry groups have warned that the tariffs Trump proposes would harm the economies of all involved, cause inflation to spike and damage job markets.
“The president should have first seen how much this will impact everyone before speaking,” Flores said.


Biden readies $725 million arms aid package for Ukraine, sources say

Updated 28 November 2024
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Biden readies $725 million arms aid package for Ukraine, sources say

WASHINGTON: US President Joe Biden’s administration is preparing a $725 million weapons package for Ukraine, two US officials said on Wednesday, as the outgoing president seeks to bolster the government in Kyiv before leaving office in January.
According to an official familiar with the plan, the Biden administration plans to provide a variety of anti-tank weapons from US stocks to blunt Russia’s advancing troops, including land mines, drones, Stinger missiles, ammunition for High Mobility Artillery Rocket Systems (HIMARS).
The package is also expected to include cluster munitions, which are typically found in Guided Multiple Launch Rocket System (GMLRS) rockets fired by HIMARS launchers, according to the notification, seen by Reuters.
The formal notification to Congress of the weapons package could come as soon as Monday, one official said.
The contents and size of the package could change in the coming days ahead of Biden’s expected signature.
It marks a steep uptick in size from Biden’s recent use of so-called Presidential Drawdown Authority (PDA), which allows the US to draw from current weapons stocks to help allies in an emergency.
Recent PDA announcements have typically ranged from $125 million to $250 million. Biden has an estimated $4 billion to $5 billion in PDA already authorized by Congress that he is expected to use before Republican President-elect Donald Trump takes office on Jan. 20.
The United States has not exported land mines in decades, and their use is controversial because of the potential harm to civilians. Although more than 160 countries have signed a treaty banning their use, Kyiv has been asking for them since Russia launched its full-scale invasion in early 2022 and Russian forces have used them on the front lines.
Russian forces currently are making gains in Ukraine at the fastest rate since the early days of the 2022 invasion, taking an area half the size of London over the past month, analysts and war bloggers said this week.
The United States expects Ukraine to use the mines in its own territory, though it has committed not to use them in areas populated with its own civilians.
Trump on Wednesday tapped Keith Kellogg, a retired lieutenant general who presented him with a plan to end the war in Ukraine, to serve as special envoy for the conflict. Quickly winding down the Ukraine war was one of Trump’s central campaign promises, though he has avoided discussing how he would do so. 


Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump

Updated 28 November 2024
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Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump

  • Mexico says Trump tariffs would kill 400,000 US jobs and drive up prices for US consumers
  • Sheinbaum also warned that Mexico would retaliate if Trump makes good his tariff plan

MEXICO CITY: Mexico’s president discussed migration and drug trafficking with US President-elect Donald Trump on Wednesday — two issues he had raised as justification for raising import tariffs on America’s southern neighbor.
Claudia Sheinbaum said she had had “an excellent conversation” with Trump, just hours after her economy minister warned that the cost to US companies of Trump’s tariffs would be “huge.”
“We discussed Mexico’s strategy regarding the phenomenon of migration,” Sheinbaum said on X, adding she had told Trump that caravans of migrants “are not arriving at the northern border because they are being attended to in Mexico.”

Earlier on Wednesday, Sheinbaum said  Mexico would retaliate if US President-elect Donald Trump followed through with his proposed 25 percent across-the-board tariff, a move her government warned could kill 400,000 US jobs and drive up prices for US consumers.
“If there are US tariffs, Mexico would also raise tariffs,” Sheinbaum said during a press conference, in her clearest statement yet that the country was preparing possible retaliatory trade measures against its top trade partner.

Mexican Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, called for more regional cooperation and integration instead of a war of retaliatory import taxes.
“It’s a shot in the foot,” Ebrard said of Trump’s proposed tariffs, which appear to violate the USMCA trade deal between Mexico, Canada and the US.

Discussion with Trump

In her talks with Trump later, she said they discussed “strengthening collaboration on security issues” as well as “the campaign we are conducting in the country to prevent the consumption of fentanyl.”
Trump on Monday said he would impose tariffs of 25 percent on Mexican and Canadian imports and 10 percent on goods from China.
“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump wrote on his Truth Social page.
The Republican, who won an election in which illegal migration was a top issue, has vowed to declare a national emergency on border security and use the US military to carry out a mass deportation of undocumented migrants.
Mexican Economy Minister Marcelo Ebrard said Wednesday some “400,000 jobs will be lost” in the United States if Trump followed through on his threat. He cited a study based on figures from US carmakers that manufacture in Mexico.

Tariff impact

Ebrard said the tariffs would also hit US consumers hard, citing the US market for pickup trucks — most of which are manufactured in Mexico. The tariffs, the minister said, would add $3,000 to the cost of a new vehicle.
“The impact of this measure will chiefly be felt by consumers in the United States... That is why we say that it would be a shot in the foot,” Ebrard told reporters, speaking alongside Sheinbaum at her regular morning conference.

The proposed tariffs would hit the automotive sector’s top cross-border exporters especially hard, Ebrard added, namely Ford, General Motors and Stellantis.
Ebrard noted that 88 percent of pickup trucks sold in the US are made in Mexico and would see a price increase. These vehicles are popular in rural areas that overwhelmingly voted for Trump.
Mexico and China have been particularly vociferous in their opposition to Trump’s threats of a trade war from day one of his second presidential term, which begins on January 20.
Sheinbaum has declared the threats “unacceptable” and pointed out that Mexico’s drug cartels exist mainly to serve drug use in the United States.
China has warned that “no one will win a trade war.”
During his first term as president, Trump launched full-blown trade hostilities with Beijing, imposing significant tariffs on hundreds of billions of dollars of Chinese goods.
China responded with retaliatory tariffs on American products, particularly affecting US farmers.
The United States, Mexico and Canada are tied to a three-decade-old largely duty-free trade agreement, called the USMCA, that was renegotiated under Trump after he complained that US businesses, especially automakers, were losing out.

Many analysts regard Trump’s tariff threats as more of a negotiating tactic than trade policy.
“The lack of a clear link between this threat and questions related to trade suggests the new president plans to use tariffs as a negotiating strategy to achieve goals largely unrelated to trade,” said David Kohl, chief economist at Julius Baer.

Profit wiped out
Mexico’s automotive industry is the country’s most important manufacturing sector, exporting predominantly to the United States. It represents nearly 25 percent of all North American vehicle production.
Analysts at Barclays said they estimate the proposed tariffs “could wipe out effectively all profits” from the Detroit Three automakers.
“While it’s generally understood that a blanket 25 percent tariff on any vehicles or content from Mexico or Canada could be disruptive, investors under-appreciate how disruptive this could be,” they wrote in a note on Tuesday.
Brian Hughes, a spokesperson for Trump’s transition team, said the tariffs would protect US manufacturers and workers from “unfair practices of foreign companies and foreign markets.”
Hughes said Trump would implement policies to make life affordable and more prosperous for his country.
GM and Stellantis declined to comment. Ford did not comment on how the threatened tariffs would affect its business but said it manufactures more vehicles in the United States than most major automakers.
Mexico’s automotive industry group AMIA said it would prepare for any possibility and wait to see what formal actions are taken.
The Institute of International Finance, a trade group for the global financial services industry, warned Mexico-US relations would be challenging going forward.
“The imposition of tariffs, eventually leading to increased protectionism, and other policies affecting exchange rates and commodity prices could have significant implications for the region,” it said in a note.
The USMCA is up for review in 2026.
Katia Goya, director of international economics at Grupo Financiero Banorte, said it was likely the three USMCA countries would seek wholesale renegotiation of the pact rather than just rubber-stamp it to continue in its current form.
“The effect of a trade-conflict situation is that it will mean lower economic growth in the United States, higher unemployment and higher inflation,” Goya said.
Ebrard said USMCA trade amounted to $1.78 trillion in the first nine months of this year.
“We can fragment and divide with tariffs,” Ebrard said. “Mexico does not want conflicts and divisions, but to build a stronger region.”