CITY OF MEXICO After U.S. President-elect Donald Trump vowed to put 25% import levies on Mexican goods if the nation doesn’t stop the flow of migrants and narcotics across the border, President Claudia Sheinbaum warned on Tuesday that Mexico could respond with tariffs of its own.
Sheinbaum stated that although she was open to discussing the concerns, she believed that drugs were a problem in the United States.
Sheinbaum made reference to American automakers with operations on both sides of the border when he remarked, “One tariff would be followed by another in response, and so on until we put at risk common businesses.”
She stated on Tuesday that Mexico has taken significant steps to stop the migration flow, pointing out that migrant caravans no longer arrive at the border. But during the past year, Mexico’s efforts to combat drugs like fentanyl, a deadly synthetic opioid produced by Mexican gangs using ingredients imported from China, have faltered.
“The flow of drugs is a problem of public health and consumption in your country’s society,” Sheinbaum said, adding that Mexico suffered from an influx of firearms smuggled in from the United States.
Additionally, Sheinbaum opposed U.S. spending on armaments, arguing that the funds should be used regionally to address the migration issue. According to her, the root causes of migration would be addressed if a portion of the money the US spends on war were allocated to peace and development.
Trump is facing a very different Mexican president than he faced during his first term, based on Sheinbaum’s abrasive response.
Former President Andrs Manuel L. Pez Obrador was a charming, traditional politician who became friendly with Trump in late 2018. In the end, the two were able to come to an agreement where Trump backed down on the threats and Mexico assisted keep migrants away from the border while receiving migrants deported by other nations.
However, Sheinbaum, a hard-line Marxist ideologue with experience in extreme student protests, who entered office on October 1, seems less inclined to appease or placate Trump.
Because we are a great country, we negotiate as equals and there is no subordination here, Sheinbaum stated, adding, “I think we are going to reach an agreement.”
However, Trump obviously detests losing, and Gabriela Siller, director of economic analysis at the banking firm Banco Base, worries that the personality conflict could turn into a brinkmanship.
According to Siller, Trump might have simply thrown the threat out there as he often does. But Trump will actually enforce them if Mexico responds by saying, “We’re going to respond to you with tariffs.”
The severity of Trump’s warning is unclear. The free trade agreement between the United States, Mexico, and Canada prohibits simply levying tariffs on other parties. Furthermore, it’s unclear if the economy could even withstand abrupt import taxes because auto factories on both sides of the border depend on one another for parts and components, and certain manufacturing lines might come to a complete stop.
It is unacceptable and would cause inflation and job losses in Mexico and the United States, Sheinbaum said, while offering to talk about the issues. Who is going to suffer if tariffs increase? “Generator Motors,” she stated.
Dialogue is the best path to achieve understanding, peace and prosperity for our two countries, Sheinbaum said. I hope we can get together as a team soon.
Late Monday, Trump said he would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders.
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Trump made the threats 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 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders, he 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!
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