MEXICO CITY (AP) — Mexican President Claudia Sheinbaum said Thursday she is confident a tariff war with the United States can be avoided.
But her statement, the day after her phone call with US President-elect Donald Trump, did not specify who offered what.
Asked about the issue at his morning press conference, Mr. Sheinbaum flatly replied, “There is no possibility of a tariff war.”
Read more: President Trump’s tariff threats put avocados, tequila and other iconic Mexican products at risk
On Wednesday, President Trump wrote that Mr. Sheinbaum had agreed to stop unauthorized immigrants from crossing the border into the United States. “Migrants and caravans will be taken care of before reaching the border,” she wrote on her social media account the same day.
However, it remains unclear whether this is a promise, a pledge, or simply a statement of reality. In recent years, migrants unable to obtain permits to cross Mexico have formed caravans and walked or hitchhiked north toward the U.S. border in search of safety.
In fact, with the exception of the first caravans in 2018 and 2019, which were provided with buses on their way north, no caravan has ever reached the border by walking or hitchhiking in any organized way.
For years, migrant caravans have often been stopped, harassed and prevented from hitchhiking by Mexican police and migration agents. They are also frequently rounded up or sent back to areas near the Guatemalan border. Therefore, Sheinbaum’s statements appear to reflect a reality that has been true for some time.
US President Joe Biden said Thursday he wants President Donald Trump to reconsider his plans to impose tariffs on Mexico and Canada, saying it could “ruin” relations with close allies.
“I hope he reconsiders. I think that would be counterproductive,” he told reporters in Nantucket, Massachusetts.
President Trump previously threatened to impose 25% tariffs on imports from Mexico and Canada until they do enough to stop illegal immigration and illegal drugs such as fentanyl from entering the United States. He also said that imports from China would be subject to an additional 10% tariff until the Chinese government cracks down on the production of raw materials used to make fentanyl.
Despite Sheinbaum’s confidence (she described the phone call with Trump as “amazing”), many Mexicans believe that U.S. tariffs will affect a wide range of iconic Mexican products. They are concerned that this could threaten the entire local economy.
In western Mexico, no other crop generates income for as many small producers as avocados, making Mexico the main supplier of the fruit to the U.S. market. But avocado growers, pickers and packers are worried that U.S. consumers, faced with a 25% price increase, will skip the guacamole.
And Sheinbaum said earlier this week that Mexico is preparing a list of retaliatory tariffs if President Trump moves forward with his import tariff plans.
If Mexico, Canada, and China faced President Trump’s proposed additional tariffs on all imports into the United States, the amount could amount to approximately $266 billion in tax collections. This figure does not assume trade disruption or retaliation by other countries. .
The costs of these taxes are likely to be borne by American families, importers, and domestic and foreign businesses in the form of higher prices and lower profits.
