Mexico is working to stall or reduce Trump's 25% tariff on foreign-made autos. Canada denounced Trump's executive order but Mexico is taking a more subdued approach.

A full-blown tariff war with the US could prove a gut punch for Mexico, which is already battling an economic slowdown. Latin America’s second-biggest economy depends heavily on its commercial relationship with its northern neighbor — its top trading partner by a wide margin.

Mexico is working to carve out an exemption for its critical autos industry after Washington announced tariffs on imported vehicles, the economy minister said on Thursday.