Published: Fri, June 07, 2019
Money | By Ethel Goodwin

Mexico Talks Ongoing, but Fail to Make Progress

Mexico Talks Ongoing, but Fail to Make Progress

Trump wants to impose tariffs on all imported Mexican goods starting Monday to push the Mexican government to do more to halt illegal immigration.

Senate Republicans left a closed-door lunch with White House officials Tuesday expressing stern opposition to President Trump's announced plan to impose tariffs on Mexican imports as a way to force the country to do more to prevent illegal immigrants from traveling through to get to the US border, according to Politico. Trade adviser at the White House, Peter Navarro, told CNN, "We believe that these tariffs may not have to go into effect, precisely because we have the Mexican's attention".

And yet it now looks possible that Mexico is so unnerved by the prospect of Trump's tariffs chasing investment and supply chains north of the border, they're not up to calling his bluff.

A diplomatic counteroffensive launched by Mexico this week includes a Tuesday meeting of trade negotiator Jesus Seade with U.S. Trade Representative Robert Lighthizer.

Mexico's Foreign Minister Marcelo Ebrard speaks to reporters after a meeting between U.S. and Mexican officials on immigration and trade at the U.S. State Department in Washington, U.S., June 6, 2019. A presidential tweet can't magically create the vast bureaucracy necessary to collect taxes on $1 billion in daily imports from Mexico.

He adds that tariffs will go up "if we don't see the results that we need to see".

Republican senators are declaring deep opposition to President Donald Trump's threatened tariffs on all goods coming into the USA from Mexico.

It is unclear whether enough Republicans would vote against Mr Trump in this instance, given broad support for his hard-line immigration stance.

Bloomberg News reports that Mexico is pushing for more time to negotiate over concerns the two sides won't be able to reach agreement on all the steps Mexico would have to take to avert the tariffs.

-Mexican talks this week but said the tariffs were still likely.

Ebrard said Wednesday's discussions had focused on migration rather than tariffs and more talks were needed to find common ground.

Some commentators have speculated that Mr Trump will not follow through, pointing out that he reversed course on a threat to close the US-Mexico border in April. "We're nearly at full employment", Fox said.

Bilateral talks in Washington are seeking to avert the tariffs, which have rattled global financial markets, with even Trump's fellow Republicans fretting about the potential economic impact on US businesses and consumers.

Mexico's finance ministry said it blocked the bank accounts of 26 people for "probable links with human trafficking and illegal aid to migrant caravans".

Trump has pledged to use his presidential powers to trigger the tariffs as soon as next week unless Mexico makes progress on slowing the flow of migrants from Central America arriving at the southern US border.

The US president announced the planned Mexico tariffs last week on Twitter, catching members of his own party and financial markets unawares. "The higher the Tariffs go, the higher the number of companies that will move back to the United States of America!" he said in another tweet.

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