As Trump's June 10 deadline to impose tariffs on Mexican imports draws near, Mexican government officials are now scrambling to move along negotiations with the United States to hopefully halt its implementation. Officials from both countries are scheduled to meet again in Washington later this week.
Trump had previously stated that Mexico's progress to curb illegal immigration into the United States was "not enough" and that more has to be done.
The US president initially announced his threat to Mexico last week, telling the country to take a harder line in curbing illegal immigration or face a 5 percent tariff on all imports.
Mexican Foreign Minister Marcelo Ebrard had already stopped by Washington to meet with US officials earlier in the week. Vice President Mike Pence chaired the meeting with the minister, with the main topic of discussion being the proper steps to take to stop the surge of Mexican immigrants in the US-Mexico border.
Trump announced in a tweet Wednesday evening that he was still unsatisfied with the immigration discussion's progress. Pence and officials that attended the meeting apparently did not hear any immediate and tangible measures that Mexico was willing to make to curb illegal immigration.
According to sources close to the discussion, Mexico was apparently pushing for more long-term solutions, while US officials wanted immediate action that had a short-term impact.
Market analysts have suggested that if Trump's Mexican tariffs were to go through, the US would essentially be in a full-blown trade dispute with both China and Mexico. Most businesses are adamant in avoiding this situation as it could very well send the US economy further downwards. Mexico also doesn't want this to happen as it could tip its already fragile economy into recession.
Mexican President Andres Manuel Lopez Obrador mentioned in an interview that he was optimistic that Mexico and the United States would reach an agreement eventually. However, the country is preparing contingency plans in case of a no-deal outcome. The biggest industries that would be hit by Trump's tariffs would mostly be in the agricultural and industrial sectors.
US officials and lawmakers have expressed their concerns over a trade dispute with Mexico, stating that it would significantly impact American businesses and consumers. A wide range of products that most Americans are used to having may become much more expensive, this would include items such as beer, fruit, and clothing.
White House trade adviser Peter Navarro told reporters that the tariffs may actually not happen. Navarro explained that Trump likely just wanted to get Mexico's attention and that it seemed to have worked.
