Mexican President expressed confidence that a potential tariff war with the United States can be avoided following a phone call with the U.S. President-elect. The details of the conversation remain unclear, with conflicting statements from both sides.
President Sheinbaum stated that there will be no potential tariff war, emphasizing the importance of addressing unauthorized migration across the border. She mentioned that migrants and caravans are managed before reaching the U.S. border, hinting at existing measures in place to control migration flows.
Despite the optimistic outlook, concerns linger over the impact of U.S. tariffs on Mexican products. The threat of imposing tariffs on imports from Mexico and Canada as a strategy to curb illegal immigration and drug trafficking has raised alarms among Mexican officials and industries.
In response to the tariff threats, Mexico is reportedly preparing a list of retaliatory measures. The potential economic repercussions of such tariffs could amount to significant tax collections, affecting various sectors and potentially leading to higher prices for consumers.
President-elect Joe Biden has expressed hope for a reconsideration of the tariff plans, highlighting the potential negative consequences on diplomatic relations and trade partnerships. The uncertainty surrounding the situation has left many Mexicans anxious about the future of cross-border trade and economic stability.
Notably, the agricultural sector, particularly avocado growers, faces the risk of reduced demand and higher prices in the event of tariffs being imposed. The implications of a tariff war extend beyond economic considerations, impacting livelihoods and regional economies.
As the situation unfolds, both Mexico and the U.S. are navigating delicate negotiations to avoid escalating tensions and maintain mutually beneficial trade relations. The outcome of these discussions will have far-reaching implications for both countries and the broader region.
