U.S. Treasury Secretary Scott Bessent revealed that Mexico has proposed to match U.S. tariffs on China, suggesting Canada should follow suit. This proposal arises from trade talks ahead of upcoming tariffs set by the U.S. administration. Proposed tariffs from Mexico would mainly focus on the automotive sector and are viewed as a protective measure against U.S. tariffs.

On Friday, U.S. Treasury Secretary Scott Bessent announced that Mexico has proposed to implement matching tariffs on Chinese imports in response to the United States’ tariffs. He deemed this proposal as “very interesting” and suggested that Canada should also consider similar measures. This initiative follows high-level discussions between Mexican officials and members of President Trump’s cabinet leading up to a March 4 deadline concerning potential tariffs on imports from Mexico and Canada.

Bessent emphasized the strategic significance of such tariffs, stating, “I think it would be a nice gesture if the Canadians did it also so in a way we could have fortress North America from the flood of Chinese imports.” This statement highlights the urgency of creating a unified North American trade stance against what Bessent described as an unbalanced economy.

Reports indicate that Mexico’s proposed tariffs would particularly target automobiles and auto parts, reflecting a strategic response to avoid a potential 25% tariff from the United States. Furthermore, Mexican President Claudia Sheinbaum’s administration has shown intention to align its trade policies with the U.S. and Canada regarding China and its trade practices.

Mexican Deputy Economy Minister Vidal Llerenas also noted that Mexico may consider additional trade measures beyond mere tariffs against low-cost Chinese imports, especially those classified as counterfeit. These developments suggest a proactive stance from Mexico regarding its trade relationship with China and its alignment with U.S. trade policies.

In summary, Mexico’s proposal to match U.S. tariffs on China reflects a strategic alignment of trade practices amidst looming tariffs from the United States. Bessent’s remarks suggest the importance of unified North American trade policies to combat the influx of Chinese goods. This response from Mexico indicates its intent to fortify its trade position while navigating ongoing pressures regarding free trade agreements. Further measures may be forthcoming as discussions continue in the face of these significant economic challenges.

Original Source: www.usnews.com

Related posts:

India Commits to Open Trade Amid Global Tariff Tensions Trump Warns of Potential Economic Pain from New Tariffs as Trade War Escalates China Implements Targeted Tariffs in Response to U.S. Levies Analysis of the U.S.-China Trade War: Strategic Resilience vs. Protectionist Policies