Mexican Pres. Sheinbaum on the new 30% tariffs effective August 1 says:
We have done our part in the fight against Sentinel, US has to do its part.Will inform little by little, Monday she is meeting with team that went to Washington and our Minister of foreign affairsWe hope to reach an agreement between now and August 1Mexico also has a plan for tariffs.There has been very important progress with the US on security issues, an agreement has almost been finalized.
Over the weekend, Pres. Trump sent his tariff letter to Mexico.
30% tariff on Mexican imports effective August 1
National security and trade imbalance cited — Trump justified the action by referencing Mexico’s insufficient actions against drug cartels (especially fentanyl trafficking) and a persistent U.S.–Mexico trade deficit
Exemptions available — Goods produced within the U.S. under USMCA may be excluded, offering an alternative to avoid the tariffs
Warning against retaliation — Canada and the EU received similar tariff letters and were cautioned against retaliation under threat of further penalties.
Negotiation window remains open — Trump hinted at potential flexibility in exchange for improved cooperation on drug trafficking and trade terms
This article was written by Greg Michalowski at www.forexlive.com.