U.S.-Mexico tariff war/ Trump trade policy/ Claudia Sheinbaum/ migration policy/ Mexico-U.S. relations/ avocado tariffs/ MEXICO CITY/ Newslooks/ J. Mansour/ Morning Edition/ Mexican President Claudia Sheinbaum expressed confidence that a potential tariff war with the U.S. can be avoided following a call with President-elect Donald Trump. While details remain unclear, Sheinbaum’s optimism comes amid Trump’s threats to impose tariffs on Mexico over immigration and drug trafficking concerns.
Mexico-U.S. Tariff Tensions: Quick Looks
- Key Issue: Trump threatens 25% tariffs on Mexican imports over migration and drug trafficking.
- Sheinbaum’s Assurance: Mexican president confident of avoiding a trade conflict.
- U.S.-Canada Tensions: Biden criticizes Trump’s plans as counterproductive for allied relations.
- Economic Stakes: Tariffs could impact Mexico’s iconic exports like avocados, with ripple effects on U.S. consumers.
- Preparations: Mexico readying retaliatory tariffs if the U.S. proceeds.
Mexican President Confident U.S.-Mexico Tariff War Avoided
Deep Look: Mexico Confident in Averting Tariff War With U.S.
Mexican President Claudia Sheinbaum assured on Thursday that a tariff war with the United States is unlikely, following a phone call with President-elect Donald Trump. The call addressed Trump’s threats to impose steep tariffs on Mexican goods unless unauthorized migration and drug trafficking are curtailed.
Sheinbaum’s Optimistic Outlook
“There will be no potential tariff war,” Sheinbaum stated at her daily news briefing. She described her conversation with Trump as “excellent,” but did not elaborate on specific agreements or concessions made.
Trump had claimed that Sheinbaum agreed to take steps to stop migration across the border, while Sheinbaum’s statement emphasized Mexico’s ongoing efforts to manage migrants and caravans before they reach the U.S. border.
Her remarks reflect longstanding practices: migrant caravans in recent years have been blocked, dispersed, or returned to southern Mexico by Mexican authorities.
Trump’s Tariff Threats
Trump has proposed 25% tariffs on Mexican and Canadian imports, linking the measure to his goals of halting illegal immigration and drug trafficking, particularly fentanyl. He also threatened additional tariffs on Chinese imports, demanding stricter controls on fentanyl production materials.
The proposed tariffs could generate an estimated $266 billion annually for the U.S., but the economic costs would likely fall on American consumers, businesses, and trading partners.
Biden’s Criticism
Economic Implications for Mexico
- Avocado Industry at Risk: Mexico is the leading supplier of avocados to the U.S., and higher prices from tariffs could hurt demand, impacting small growers, pickers, and packers.
- Retaliatory Measures: Earlier this week, Sheinbaum confirmed Mexico was preparing a list of retaliatory tariffs should Trump follow through on his threats.
While Mexico aims to avoid a trade conflict, the stakes are high for both countries. U.S. businesses and consumers could face higher prices, while Mexico’s export-driven economy would endure significant losses.
Broader Trade Tensions
Trump’s approach to tariffs extends beyond Mexico. His plan includes increased duties on Canadian imports and additional tariffs on Chinese goods, further escalating global trade tensions.
Conclusion: Optimism Meets Uncertainty
Despite Sheinbaum’s confidence, questions remain about how Mexico and the U.S. will navigate these contentious issues. With economic and political stakes on both sides, the potential for a tariff war underscores the complexities of balancing diplomacy, trade, and domestic pressures in the Trump administration’s approach to international relations.
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