Tariff war with US can be avoided, a confident Mexican President says

Sheinbaum, in a social media post, noted that “migrants and caravans are taken care of before they reach the border,” though it is uncertain whether this was a pledge, a description of current measures, or simply an observation, reported by AP.

Over the past few years, large groups of migrants, unable to obtain formal crossing permits, have travelled in caravans for safety while heading towards the US border. However, most of these caravans have faced significant challenges within Mexico, including blockades, arrests, and deportations by authorities. Sheinbaum’s comments appear to highlight longstanding practices rather than a new agreement.

Meanwhile, US President Joe Biden on Thursday urged Trump to reconsider his proposed tariffs on Mexico and Canada, warning of potential damage to relations with key allies. Speaking in Nantucket, Massachusetts, Biden said, “I hope he rethinks it. I think it’s a counterproductive thing to do.”

Trump has threatened to impose 25% tariffs on Mexican and Canadian imports unless both countries take stronger action to curb illegal immigration and stem the flow of drugs, including fentanyl, into the United States. Additionally, he proposed a 10% tariff on Chinese imports, citing Beijing’s role in producing chemicals used in fentanyl manufacturing.

Despite her confidence in avoiding a tariff standoff, Sheinbaum acknowledged concerns about potential economic fallout for Mexico. “The conversation with President Trump was excellent,” she said, but Mexican industries, particularly agriculture, remain worried.

In western Mexico, the avocado industry, a major supplier to the US, is on edge. A 25% tariff could significantly raise prices for American consumers, potentially reducing demand for the fruit, which supports countless small growers and workers.

Earlier this week, Sheinbaum revealed that Mexico was preparing a list of retaliatory tariffs in case Trump moves forward with his plan. Analysts estimate that if the proposed tariffs on goods from Mexico, Canada, and China were implemented, they could amount to $266 billion in tax collections. This figure does not account for potential trade disruptions or countermeasures.

The costs of such tariffs would likely be borne by US households, businesses, and companies in the form of increased prices or diminished profits.

(with inputs from AP)