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Earlier today, Mexico’s Foreign Minister Marcelo Ebrard said that he had started negotiating with officials in Washington after U.S. President Donald Trump threatened to impose tariffs on imports of Mexican products.
President Donald Trump said on Thursday the United States would impose a 5% tariff on all goods coming from Mexico starting on June 10 until illegal immigration across the southern border is stopped.
In a statement issued by the White House, Trump said the tariff would increase to 10% on July 1, 15% on August 1, 20% on September 1, and to 25% on October 1.
Ebrard said on Twitter that he had spoken to Senior White House adviser Jared Kushner and U.S. Secretary of State Mike Pompeo over the phone, and that he was about to board a plane to Washington to continue the negotiations.
Later on, he informed that the summit to resolve the U.S.-Mexico conflict would take place on Wednesday in Washington. “Mike Pompeo will lead the U.S. delegates and I will be leading the Mexican delegation. […] We will stand firm to defend Mexico’s dignity,” he wrote on Twitter.
President Andrés Manuel López Obrador
said this morning he would respond with “great prudence” to threats by his U.S. counterpart Donald Trump to impose tariffs on Mexican goods entering the United States, and called on Mexicans to unite to face the challenge.
This is the biggest foreign policy test to date for President López Obrador, who during his six months in power has consistently sought to deflect Trump’s barbs and avoid embroiling himself in confrontations.
U.S. farmers and manufacturers fret over Trump’s Mexico tariff plan
The U.S. National Association of Manufacturers spoke against Trump’s announcement, claiming that the proposed tariffs would have devastating consequences on manufacturers in America and on American consumers.
Jay Timmons, association president, said that manufacturers have been working hard to win passage of USMCA (U.S.-Mexico-Canada Agreement) . “The last thing we want to do is put that landmark deal ... in jeopardy,” he said.
For their part, the International Monetary Fund commented that trade was a major engine of growth and that it would be best for all economies if trade tensions can be de-escalated as quickly as possible. “In this case, we hope that the issues can be resolved soon and, in that respect, the recent agreement reached on the USMCA is a positive development,” the IMF stated through a press release.
The U.S. National Association of Wheat Growers and other wheat associates called on the U.S. President to rescind his threat: “We’ve been hit by low prices; we’ve been hit by rain and flooding that is hurting what was an excellent wheat crop; and now we’ve been hit again by the actions of our own government. We need to end indiscriminate use of tariffs now, one way or another.”
The Motor and Equipment Manufacturers Association also said the tariffs would disrupt USD$452 million worth of automotive cross-border trade every day.
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