MEXICO CITY (Reuters) - 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.

Sheinbaum ordered retaliatory tariffs on Saturday in response to the U.S. decision to slap 25% tariffs on all goods coming from Mexico, as a trade war broke out between the two neighbors.

In a speech outside the Mexican capital on Sunday, Sheinbaum raised her fist in the air and said that the trade penalties first ordered by U.S. President Donald Trump will hit his own people with higher prices.

She said her government preferred dialogue rather than confrontation with its top trade partner to the north, but warned that the tariffs will hit the United States with higher prices.

Trump also said on Sunday that the sweeping tariffs he has imposed on Mexico, Canada and China may cause "some pain" for Americans, as Wall Street and the largest U.S. trading partners signaled hope that the trade war would not last long.

In a separate video posted on X, Sheinbaum said she will provide more details on the retaliatory tariffs she ordered against the United States on Monday, part of what her government has called "Plan B".