Mexico’s economy minister sent Donald Trump a fighting message: We will retaliate right away if you hit us with a “major border tax.”
“It’s very clear that we have to be prepared to immediately be able to neutralize the impact of a measure of that nature,” economy minister Ildefonso Guajardo said Friday on a Mexican news show.
Guajardo also predicted that Trump’s threat of a 35% tariff against Mexico, if carried out, would result in a “global recession” because it would inhibit companies from producing outside the U.S.
“It would be a problem for the entire world,” Guajardo warned. A Trump tariff “will have a wave of impacts that can take us into a global recession,” Guajardo said, speaking in Spanish.
In recent weeks, Trump has zeroed in on companies manufacturing in Mexico and selling products in the United States, threatening them with a “major border tax” of 35%.
In tweets, Trump has singled out GM and Toyota as potential targets, though he indicated in a December tweet the tax would apply to all businesses, not just automakers.
And during his first press conference on Wednesday January 11, since winning the election, Trump doubled down on his threat.
“There will be a major border tax on these companies that are leaving and getting away with murder,” Trump said Wednesday.
Guajardo noted that Toyota has extensive U.S. operations and employs a lot of American workers.
“If I were Mr. Trump, I’d treat them with more respect,” Guajardo said.
Trump’s economic advisers have said they will use the threat of tariffs to get a better trade deal with Mexico. They’ve indicated renegotiating NAFTA, the free trade deal between Canada, Mexico and the U.S., is a Day 1 priority. Mexico’s President, Enrique Pena Nieto, said he’s open to “modernizing” NAFTA.
Mexico heavily depends on trade with the United States to drive its economy and create jobs. And the U.S. Chamber of Commerce estimates six million U.S. jobs depend on trade with Mexico.
Trade experts on both sides of the border warn that stiff tariffs would risk jobs in both countries.
Guajardo didn’t say exactly how Mexico would hit back.
“There are ways — it’s very clear how — to take a fiscal action that clearly neutralizes it,” Guajardo said.
Trump’s threats have already weighed on Mexico. The peso plunged after the election and remains near an all-time low. Mexico’s central bank dimmed its economic forecast this year, citing the U.S. election outcome.
more recommended stories
Puerto Morelos expects thousands of tourists during the Holy Week and Easter holidays
“The beaches of Puerto Morelos (that.
Quintana Roo’s Occidental at Xcaret contending for the “Coolest” Hotel Pool in the World!
March Madness is here again, and with.
Underwater discovery in Egypt ends a thousand year old archaeological mystery
Nile shipwreck discovery proves Herodotus right.
President Trump threatens ‘SNL’ with federal investigation because they mock him
Donald Trump threatened “Saturday Night Live”.
Mexican students win direct pass to Robotics World Championship
Seven teams made up of PrepaTec.
Third journalist killed in Mexico in 2019
Today, Mexico is considered one of.
“Don’t rush when you brush”… This is how you keep the teeth of your crocodile clean
Banten, Indonesia. – In one of those.
First Details of Guillermo del Toro’s Animation Center revealed
The 34thGuadalajara Int’l Film Festival (FICG), boasting.
Former top Vatican official, sentenced to prison for sexual abuse
Never in the history of the.
Federal Judiciary Council denies “gagging order” against judges who criticize AMLO
Federal Judiciary Council denies “gagging order”.