Mexico will discover a technique to keep away from US tariffs, minister says

By Kylie Madry

MEXICO CITY (Reuters) -Mexico goes to discover a answer to keep away from the imposing of tariffs by the USA, Financial system Minister Marcelo Ebrard stated on Friday, following threats from U.S. President-elect Donald Trump to take action.

Trump has promised sweeping tariffs on Mexico if it doesn’t crack down on migrant arrivals on the shared border and the entry of medication, notably fentanyl, into the U.S.

Ebrard, talking at a convention in Mexico Metropolis, in contrast the present commerce tensions with earlier negotiations throughout Trump’s first time period, when Ebrard was Mexico’s international minister.

Then, Trump made large tariff threats round migration that didn’t come to cross.

“Ultimately, there have been no tariffs or treaties, as a result of we discovered a means out,” Ebrard stated, including that this time, “I assure you we’ll discover (a means out).”

Ebrard reiterated that Trump’s tariff threats appeared unrealistic due to the heavy influence they’d have on the U.S. financial system.

“You may’t have low inflation and sustained financial development within the U.S. if, on the similar time, you are rolling out robust protectionist insurance policies towards Mexico and China,” he stated. “That is a key benefit for Mexico.”

Trump has additionally accused Mexico of being a backdoor for Chinese language items to achieve the U.S., one thing Mexico denies.

Mexico has, nevertheless, launched a crackdown on contraband merchandise imported from Asia referred to as “Operation Clear-Up.” It additionally imposed tariffs on textile imports, which Ebrard stated have been in response to the flooding of the native market with low cost items.

Mexico can be trying to broaden its commerce relationship with different international locations past the U.S., Ebrard stated, including that the United Arab Emirates’ sovereign wealth fund was learning investments in Mexico’s semiconductor and renewable vitality sectors.