Mexican President Claudia Sheinbaum expressed confidence that a tariff war with the United States could be avoided. After a phone call with U.S. President-elect Donald Trump, it was not clear who made what offer. Sheinbaum stated firmly that there would be no potential tariff war during her daily news briefing.
Trump had previously mentioned that Sheinbaum agreed to prevent unauthorized migration across the border. Sheinbaum also mentioned on her social media that migrants and caravans are taken care of before reaching the border. However, it is uncertain whether this was a promise, a pledge, or just a statement of fact. Over the years, migrant caravans heading north to the U.S. border have faced obstacles, harassment, and sometimes been prevented from crossing by Mexican authorities.
President Joe Biden expressed hope that Trump would reconsider imposing tariffs on Mexico and Canada, as it could harm relationships with close allies. Trump had threatened to impose tariffs on imports from Mexico and Canada until they address illegal immigration and drug trafficking issues. He also mentioned additional tariffs on Chinese imports until Beijing takes action on the production of materials used in making fentanyl.
Despite Sheinbaum’s positive outlook following her conversation with Trump, there are concerns in Mexico about the potential impact of U.S. tariffs on various Mexican products and regional economies. For example, avocado growers fear that higher prices due to tariffs could deter U.S. consumers from purchasing avocados, affecting their livelihoods.
Mexico is reportedly preparing a list of retaliatory tariffs if Trump proceeds with imposing import duties. If Mexico, Canada, and China face the additional tariffs proposed by Trump, it could lead to significant tax collections, ultimately impacting U.S. families, importers, and companies through higher prices or reduced profits.
In conclusion, while there is hope for avoiding a tariff war between the U.S. and Mexico, the situation remains uncertain. The potential implications of tariffs on various sectors highlight the complexities of international trade relations and the need for diplomatic solutions to address shared challenges. Stay tuned for further developments on this issue.
