Mexican negotiators meet with U.S. officials in Washington for a second day Thursday. They’re trying to strike a deal to avoid U.S. tariffs on Mexican goods. U.S. President Donald Trump says progress is being made at the talks, but not enough. CGTN’s Gerald Tan examines what’s at stake for the U.S-Mexican trade relationship.
From Chevrolets to Coronas, numerous brands of goods popular in the United States are made in Mexico. President Donald Trump’s tariffs will make them all more expensive.
Trump is threatening a 5% levy on every single item imported from Mexico. This takes effect Monday, but the cost doesn’t end there.
Every month, those tariffs will go up by another 5%, peaking at 25% in October. Unless, Trump says, Mexico stems its tide of illegal migrants crossing into the U.S.
“Mexico’s been making for many, many years hundreds of billions of dollars. They’ve been making an absolute fortune on the United States. They have to step up and they have to step up to the plate,” Trump said in Ireland.
The prospect of tariffs alarms the business community. Last year, the United States imported $346.5 billion worth of goods from Mexico.
The biggest category: Automobiles. Auto makers from around the world, including American bands Chevy and Ford, manufacture vehicles in Mexico. Along with parts, those imports topped $112 billion dollars last year. And more expensive auto parts could hurt U.S. assembly plants.
Mexico is also America’s largest foreign supplier of food. Last year, the U.S. rung up $26 billion in imported fruits, vegetables, beer, wine, and other agricultural products.
Many economists see the import tax as a lose-lose scenario. American consumers end up paying the price at the checkout, while businesses struggle with higher costs. The Mexican government calls the tariffs counterproductive, saying that any economic instability will only reduce its capacity to address the migrant flow.
US, Mexican officials hold talks in Washington as tariff deadline looms
U.S. and Mexico negotiators are reportedly making some progress in trade talks. The Trump Administration is threatening tariffs on all imports from Mexico, unless it does more to curb illegal immigration. CGTN’s Owen Fairclough has more.