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Mexico Plans to Mirror US Import Taxes Promised by Trump

© AFP 2023US presidential candidate Donald Trump leaves after a joint press conference with Mexican President Enrique Pena Nieto (out of frame) in Mexico City on August 31, 2016.
US presidential candidate Donald Trump leaves after a joint press conference with Mexican President Enrique Pena Nieto (out of frame) in Mexico City on August 31, 2016. - Sputnik International
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On Monday, Mexico’s minister of the economy announced that the country was prepared to renegotiate trade regulations with Washington and that any US tax policy changes that impacted imports would be met with a “mirror action” from Mexico City.

In a meeting with US executives, President Donald Trump remarked that companies that sent jobs outside of the United States would have to pay a "major border tax," a move that could impact the imports of America’s main trading partner, Mexico. 

US President Donald Trump speaks during the Inaugural Law Enforcement Officers and First Responders Reception in the Blue Room of the White House in Washington, US, January 22, 2017. - Sputnik International
Trump to Meet Mexico, Canada Leaders Within Next 30 Days to Discuss NAFTA

During a Monday interview with the El Universal newspaper, Economy Minister Ildefonso Guajardo said that, "If there is any action that punishes imports to the North American market and encourages US exports, you have to reflect it in a mirror action to counteract the change of incentives that this would make for activity and investment in Mexico."

This follows Trump’s announcement on Sunday that he would enter discussions to renegotiate the North American Free Trade Agreement (NAFTA) with the Mexican and Canadian governments. Trump is expected to sign an executive order to that end as early as Monday. 

In a recent White House statement the Trump administration declared, "If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA." 

Canada's Prime Minister Justin Trudeau pauses before the start of an interview with Reuters on Parliament Hill in Ottawa, Ontario, Canada, May 19, 2016. - Sputnik International
Canadian PM, Cabinet to Discuss Trump’s Plans on NAFTA Trade Deal

As part of his "America First" orientation, Trump also vowed to go after nations that violate trade agreements and "harm American workers in the process."

Mexico has expressed a willingness to renegotiate the deal with Washington, but said that it would not talk specifics until the US clarifies its position. "The dialogue has not yet begun, we cannot get ahead of ourselves," Guajardo said.

Although US exports increased 258 percent under NAFTA, creating a surplus of manufactured and agricultural goods, Trump has called it "one of the worst deals ever,” blaming the agreement for the decimation of America’s manufacturing sector. 

U.S. President Donald Trump takes the oath of office as his wife Melania holds the bible and his children Barron, Ivanka, Eric and Tiffany watch as U.S. Supreme Court Chief Justice John Roberts (R) administers the oath during inauguration ceremonies swearing in Trump as the 45th president of the United States on the West front of the U.S. Capitol in Washington, DC, U.S., January 20, 2017 - Sputnik International
Trump's Start: US to Withdraw From TPP, Renegotiate NAFTA Deal

Ahead of his October 2016 debate with Democratic rival Hillary Clinton, Trump tweeted, "I will renegotiate NAFTA. If I can’t make a great deal, we’re going to tear it up. We’re going to get this economy running again."

"Counter to the incoming Trump administration's goal of creating manufacturing jobs, the withdrawal from NAFTA or the implementation of punitive tariffs could result in the loss of 31,000 US jobs," said the Center for Automotive Research, in a statement.

Trump also signed an executive order Monday withdrawing the participation of the US from the Trans Pacific Partnership (TPP). Though the deal was not expected to pass Congress, Trump said that pulling out of the deal was a "great thing for the American worker."

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