Trump will make “strategic mistake” if he imposes tariffs on Mexico: Ebrard
MEXICO - US President Donald Trump will make a “strategic mistake” if he imposes tariffs on imports from Mexico, said Marcelo Ebrard, Secretary of Economy.
Trump has reiterated that he will place a 25% tariff on imports of products to the United States from Mexico, arguing ineffective cooperation with the Mexican government to deal with drug trafficking and migration.
Mexican President Claudia Sheinbaum has maintained that the Mexican government is in the best disposition to cooperate with the Trump Administration, that it will negotiate with a cool head and that it will ultimately respond with retaliation to U.S. tariffs, if they are applied.
In particular, Ebrard said that the inflationary impact in the United States would be greater in border states and cities with high consumption of Mexican products, such as California, Texas, Florida and Arizona.
U.S. President Donald Trump will make a “strategic mistake” if he imposes tariffs on imports from Mexico, said Marcelo Ebrard, Secretary of Economy.
Trump has reiterated that he will place a 25% tariff on imports of products to the United States from Mexico starting this Saturday, arguing ineffective cooperation with the Mexican government to confront drug trafficking and migration.
In the daily conference at the Presidency, the official exposed that the United States would have a strong inflationary impact if this Trump's plan is carried out.
If so, he added, the United States would face higher prices in supermarkets (fruits, vegetables, meat, beer), cars and trucks (impact on dealerships and spare parts), electronic products and appliances, and medical equipment.
Mexican President Claudia Sheinbaum has maintained that the Mexican government is in the best disposition to cooperate with the Trump Administration, that it will negotiate with a cool head and that it will ultimately respond with retaliation to U.S. tariffs, if they are applied.
In particular, Ebrard said that the inflationary impact in the United States would be greater in border states and cities with high consumption of Mexican products, such as California, Texas, Florida and Arizona.
He pointed out that if the United States were to impose a 25% tariff on Mexican exports, consumers would be seriously affected, mainly in final products such as cars, computers, televisions and refrigerators.
U.S. consumers would be affected by higher prices; lower product availability; and possible disruptions in supply chains.
In the automotive sector, Mexico is the leading supplier of automobiles and auto parts to the United States and tariffs would affect 12 million U.S. households.
These consumers would pay an additional US$10.4 billion, causing strong inflationary pressures.
Mexico is also the fifth largest foreign supplier of computers to the U.S. market. A 25% tariff on these Mexican products would affect 40 million U.S. families. The impact would be a US$$7.1 billion increase in their purchases from Mexico.
Additionally, Mexico is the world's second largest exporter of screens, and the main supplier in the United States (one out of every two). The tariff increase would affect 32 million U.S. families, who would have to pay an additional US$2.3 billion.
