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Mexico girds for talks on 'counterproductive' Trump tariff threat

Mexico girds for talks on 'counterproductive' Trump tariff threat

Trump shocked US lawmakers and Mexican leaders last week by announcing that he would impose a 5 percent tariff on all goods imported from Mexico on June 10, and then increase the levies each month if the border with the United States isn't closed to migrants.

The president commented on the proposed tariffs on Mexico during a press conference with British Prime Minister Theresa May.

A war of words kicked off last Thursday between the two heads of state when President Trump threatened to impose a five percent tariff on Mexico if it didn't move to change its border policies, later calling the country an "abuser" of the US.

"As a sign of good faith, Mexico should immediately stop the flow of people and drugs through their country and to our Southern Border", he wrote.

"I don't think they will do that", Trump said.

Trump stunned Mexico on Thursday by announcing that the United States would place duties on all imports from Mexico, beginning at five percent on June 10 and rising to as high as 25 percent, unless Mexico City took action to halt the hundreds of thousands of migrants crossing into the USA from Mexico in recent months.

"By what we have seen so far, we will be able to reach an agreement", Ebrard said Tuesday during a news conference at the embassy.

Mexico is preparing a proposal on immigration to present to United States officials at a meeting in Washington on Wednesday, but Trump said the talks might not be enough.

President Donald Trump dismissed a report that some Republican lawmakers are discussing an action to block his imposing tariffs on Mexican imports.

"I just hope they can reach some kind of agreement to delay this and continue to talk", Thune said.

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Instead of curtailing illegal immigration into the U.S., Dhawan fears the opposite could happen because escalating tariffs would have more severe economic effects in Mexico than in the U.S.

"If the market goes up as a result of the tariffs, then - in my experience - the Canadian market will most likely follow", he says. He also said he doubted Republicans in Congress would muster the votes against him.

However, acting White House Chief of Staff Mick Mulvaney said the issue of Mexican tariffs and the USMCA are not linked. Mexico has almost tripled monthly deportations since the start of the year but is struggling to cope with the rising flow of migrants.

Al Jazeera's Rosalind Jordan, reporting from Washington, said: "It's unusual and perhaps illegal for a government to impose tariffs for non-economic or trade-related reasons". Six minors have died while they were in USA custody or shortly after being released.

Ebrard predicted Wednesday's meeting will be long, and he intends to highlight that Mexico is already making a big effort to curb migrants, despite what Trump has claimed.

"Here we go again", said Roger Johnson, president of the National Farmers Union.

Trump, who is eager to use immigration as an issue for his 2020 re-election campaign, as he did during his 2016 White House bid, has grown increasingly agitated about the situation along the U.S. -Mexico border.

Deutsche Bank analyst Emmanuel Rosner said in a note that a 25-percent tariff would add about $1,300 on average to the cost of a auto in the United States, which could force production to shrink by almost 20 percent.

"When you talk about money and losing money and resources, you get action", said Paxton. In addition to agricultural products like avocados and tequila, Mexico is a major manufacturing hub and hosts many multinational companies from carmakers Ford and General Motors to technology giant IBM and soft drink titan Coca-Cola.

May used part of her opening statement to praise North Atlantic Treaty Organisation, saying the USA leader has been successful in pushing the military alliance's members to contribute more to its budget.