Mexico’s President On Trump Threat: ‘One Tariff Would Be Followed By Another In Response’

Mexico’s President Andres Manuel Lopez Obrador has warned the United States that any tariffs imposed on Mexican goods would be met with reciprocal tariffs on U.S. goods.

Background

The threat comes after President Trump threatened to impose a 5% tariff on all Mexican imports starting June 10th. The tariff is intended to pressure Mexico to do more to stop the flow of illegal immigrants and drugs into the United States.

Key Facts and Latest Updates

President Lopez Obrador said that Mexico would not be intimidated by the threat of tariffs. He said that Mexico would “respond in the same way” by imposing tariffs on U.S. goods such as corn, pork, and cheese.

U.S. Commerce Secretary Wilbur Ross said that the Trump administration is “not bluffing” about the tariffs. He said that the tariffs would be imposed if Mexico does not take steps to reduce the number of illegal immigrants and drugs entering the United States.

Analysis or Impact

The threat of tariffs has raised concerns about the impact on the economies of both Mexico and the United States. A study by the Peterson Institute for International Economics found that a 5% tariff on all Mexican imports would cost the U.S. economy $22 billion per year.

The tariffs would also harm the Mexican economy. The Mexican Chamber of Commerce has estimated that the tariffs would cost Mexico $12 billion per year.

Conclusion

The threat of tariffs is a major escalation in the ongoing trade dispute between the United States and Mexico. It remains to be seen whether the two countries can reach a compromise or whether the tariffs will be imposed.