Mexican Pres. Sheinbaum on the new 30% tariffs effective August 1 says:
- We have done our part in the fight against Sentinel, US has to do its part.
- Will inform little by little, Monday she is meeting with team that went to Washington and our Minister of foreign affairs
- We hope to reach an agreement between now and August 1
- Mexico also has a plan for tariffs.
- There has been very important progress with the US on security issues, an agreement has almost been finalized.
Over the weekend, Pres. Trump sent his tariff letter to Mexico.
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30% tariff on Mexican imports effective August 1
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National security and trade imbalance cited — Trump justified the action by referencing Mexico’s insufficient actions against drug cartels (especially fentanyl trafficking) and a persistent U.S.–Mexico trade deficit
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Exemptions available — Goods produced within the U.S. under USMCA may be excluded, offering an alternative to avoid the tariffs
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Warning against retaliation — Canada and the EU received similar tariff letters and were cautioned against retaliation under threat of further penalties.
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Negotiation window remains open — Trump hinted at potential flexibility in exchange for improved cooperation on drug trafficking and trade terms
This article was written by Greg Michalowski at www.forexlive.com.