Mexico City, Nov 27 : Mexican President Claudia Sheinbaum has responded to US President-elect Donald Trump's threat to impose a general tariff of 25 per cent on imports from Mexico, warning the former President that "neither threats nor tariffs will solve the issue of migration or drug consumption".

President Sheinbaum suggested on Tuesday that Mexico could retaliate with tariffs of its own after US President-elect Trump threatened to impose tariffs on Mexican goods if the country doesn't stop the flow of drugs and migrants across the border.

At her daily news conference on Tuesday, Sheinbaum started by reading out a letter to Trump, who had threatened tariffs if Mexico didn't stop "criminals and drugs" from entering the US.

Sheinbaum said she was willing to engage in talks on the issues, but said drugs were a US problem.

"One tariff would be followed by another in response, and so on until we put at risk common businesses," Sheinbaum said, referring to US automakers that have plants on both sides of the border.

She said that Mexico had done a lot to stem the flow of migrants, noting that "caravans of migrants no longer reach the border". However, Mexico's efforts to fight drugs like the deadly synthetic opioid fentanyl -- which is manufactured by Mexican cartels using chemicals imported from China -- have weakened in the last year.

"President Trump, neither threats nor tariffs will solve the issue of migration or drug consumption in the United States," the Mexican President said.

"Cooperation and shared understanding are required to face these important challenges."

"For example, some of the largest exporters from Mexico to the United States are General Motors, Stellantis, and Ford Motor Company, which arrived in Mexico 80 years ago," Sheinbaum said.

"Why impose a tax that puts them at risk? It's unacceptable and would cause inflation and job losses in Mexico and the United States."

Sheinbaum said Mexico suffered from an influx of weapons smuggled in from the United States and that the flow of drugs "is a problem of public health and consumption in your country's society".

Sheinbaum also criticised US spending on weapons, saying the money should instead be spent regionally to address the problem of migration.

"If a percentage of what the United States spends on war were dedicated to peace and development, that would address the underlying causes of migration," she said.

Sheinbaum added that the economic strength of North America lies in maintaining the business relationship between the two countries, which will allow them to be more competitive compared to other economic blocs.

"I believe that dialogue is the best way to reach understanding, peace, and prosperity in our nations," she said.

"I hope that our teams can meet soon."

Earlier, Trump made the threats on Monday in a pair of posts on his Truth Social site in which he railed against an influx of illegal migrants, even though apprehensions at the southern border have been hovering near four-year lows.

"On January 20, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 per cent Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Trump wrote.

He said the new tariffs would remain in place "until such time as Drugs, in particular, Fentanyl and all Illegal Aliens stop this Invasion of our Country!"

"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," he went on, "and until such time that they do, it is time for them to pay a very big price!"

/IANS