Published: Wed, June 05, 2019
Money | By Ethel Goodwin

Mexico leader hints at migration concessions amid U.S. trade spat

Mexico leader hints at migration concessions amid U.S. trade spat

"We're going to see if we can do something, but I think it's more likely that the tariffs go on", Trump said at a news conference in London.

Mexico's president has hinted his country could tighten migration controls to defuse US President Donald Trump's threat to impose tariffs on Mexican goods.

Ahead of negotiations with Mexican officials, Trump said over the weekend that he wants "action, not talk". The tariffs will scale up every month until they reach 25 per cent in October, unless Mexico takes sufficient action, as judged by the Trump administration.

"By imposing escalating tariffs on Mexico, our second largest export market and third largest trading partner, President Trump has again chosen to increase taxes on USA businesses, American workers, and American consumers", Helfenbein warned.

Talks between the two countries started Monday, with U.S. Secretary of State Mike Pompeo set to meet Wednesday at the White House with his Mexican counterpart, Foreign Minister Marcelo Ebrard, along with other U.S. and Mexican officials. "That is why I think the imposition of tariffs can be avoided".

Increasing numbers of Central American families and unaccompanied minors seeking asylum from criminal violence back home have been turning themselves in to US border agents who have always been geared up to catch mainly single, adult Mexicans trying to cross clandestinely.

"From Washington I can report that we have made progress during meetings with cabinet members, private think tanks, specialists".

"Autos is the most at-risk sector from Mexico tariffs", UBS Securities analyst Colin Langan said in a Friday note.

"If the market goes up as a result of the tariffs, then - in my experience - the Canadian market will most likely follow", he says.

It's not clear what the latest tariff threats will mean for passage of the president's own trade proposal to replace the North American Free Trade Agreement.

The number of ports of entry for returnees under the so-called "Remain in Mexico" policy has gradually increased, and policy experts say it could be expanded to more cities.

The U.S. stock market indices trading are back near their lows again after attempting to stage a comeback following the extremely weak June open, which trailed the worst May performance since 2012.

Faced with this threat, major automakers are also planning to delay some vehicle shipments from Mexico, people briefed on the plans told Reuters on Tuesday.

Trump, who has embraced protectionism as part of an "America First" agenda aimed at reshaping global trade, said in a tweet last Thursday that he would ratchet up tariffs on Mexico "until the Illegal Immigration problem is remedied".

"Paccar operates truck factories in both the US and Mexico", said Ken Hastings, an investor relations representative with the company. "And if they won't, we're going to put tariffs on".

The medical device maker said the proposed tariffs would have an immaterial impact on the company as it does not have any plants in Mexico, and both its customer and supply base in the country are very small.

Both China and Mexico are now exploring possible deals with the United States to remove the tariffs.

Traditional pro-business Republican groups also have announced strong opposition to the tariffs, and some are urging Congress to act. Right now, many American families and businesses that buy those products can avoid the 25 percent tax on Chinese products by buying the same kinds of items from Mexico.

Ford exported more than 250,000 units to the USA from Mexico, though it's the only US automaker to reduce its Mexican production footprint in recent years.

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