Mexico's initial response to president Donald Trump punishing it with an escalating series of tariff hikes for not stopping the inflow of Central American immigrants into the United States was surprisingly timid.
In a letter delivered to Trump on Friday, Mexican President Andrés Manuel López Obrador said Mexico doesn't respond well to economic threats but in the same breath said he did not want confrontation. He pointed out leaders have a responsibility to seek peaceful solutions to controversies.
"Social problems cannot be resolved with taxes or coercive measures," wrote Obrador to Trump.
Obrador also pointed out ideals such as justice and universal brotherhood are more important than borders. He then said he sends his secretary of foreign affairs, Marcelo Ebrard, travel to Washington on Friday to talk to Trump and other officials.
The toughest line in Obrador's letter to Trump was the phrase: "America First is a fallacy.
In a tweet early Friday morning, Trump gave Mexico one month to stop the immigrants before he raises tariffs on all Mexican imports to the U.S. by 5% on June 10; 10% in July; 15% in August; 20% in September and 25% in October. Tariffs will only be lowered at Trump's "sole discretion and judgment."
Trump has consistently assailed Obrador for failing to do stop the surge of Central American migrants, mostly from El Salvador, Honduras, and Guatemala, fleeing to the U.S in search of asylum.
Now, Trump demands Mexico take action to "reduce or eliminate the number of illegal aliens" crossing into the U.S.
"On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied ....at which time the Tariffs will be removed. Details from the White House to follow." Tweeted Trump.
The White House later revealed more details about the new Trump tariffs.
"If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019," said the White House
"Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019. Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory."
Mexico's imports accounted for 13.6% of total U.S. imports in 2018. In that year, the U.S. imported $346.5 billion worth of Mexican goods.
Trump's Mexican tariffs also jeopardize the approval of the U.S.-Mexico-Canada Agreement (USMCA) in both Mexico and the U.S.
Trump's punitive move against Mexico came less than a day after U.S. Trade Representative Robert Lighthizer sent a letter to congressional leaders to jump-start the tedious process of approving the USMCA, which only makes minor amendments to the existing North American Free Trade Agreement or NAFTA.
