Mexico's President Claudia Sheinbaum said on Sunday that reason should prevail a day after her government and the U.S. announced tariffs against one another, raising her fist in the air as she said she does not lack courage to respond.

Trump knows the United States has more leverage over its neighbors than they do over his country. But exploiting that position of strength could cause a historic rupture.

Canada's prime minister and Mexico's president have ordered retaliatory tariffs against Americans, following through with their threats after U.S. Donald Trump sparked a trade war by imposing sweeping tariffs on imports from Canada,