Guillermo Malpica Soto
CNBC
Mexico won’t retaliate against President Donald Trump‘s tariffs until the threat seems more serious, Mexican trade official Guillermo Malpica Soto told CNBC on Friday.
Trump’s announcement late Thursday of a 5% tariff on goods from Mexico is “so far only an announcement,” said Malpica, head of the Trade & NAFTA Office. “We have to wait and see what the complete notification procedure from the U.S. to Mexico [is], and then assess how that would impact our commitments with the U.S.”
Trump said late Thursday the tariffs on Mexico would be implemented beginning June 10. The Trump administration says it hopes the duties will force Mexico to curb illegal immigration — though Trump cited manufacturing jobs and trade deficits as motivation for the tariffs in Friday tweets. The White House said the duties would gradually rise to 25% by October 2019.
The move came as the U.S. and China attempt to strike a trade deal. The world’s two largest economies increased tariffs on one another this month, with the U.S. making the first move by increasing duties on $200 billion worth of Chinese products from 10% to 25%. China announced plans to raise tariff rates on $60 billion in U.S. goods.
The Mexico tariffs may further undermine the chance of a trade resolution with China.
Trump’s threat could also complicate the updates to the North American Free Trade Agreement sent to Congress by the White House on Thursday.
Malpica, speaking in an interview on CNBC’s “Closing Bell, ” said Mexico officials were “disappointed” with the White House’s announcement but that it didn’t necessarily affect ongoing trade discussions. Mexico has also had “initial discussions” with trading partner Canada, Malpica said. “For them, it’s also important to have a ratification soon.”
“We try to separate the public discourse from the technical discussions [and] serious engagement among our parties,” he added.
