President of the United States, Donald Trump, fulfilled his threat to impose trade sanctions if Mexico and Canada do not reduce the trafficking of fentanyl and illegal migrants at their borders. This warning was not taken too seriously by the President of Mexico, Claudia Sheinbaum, who responded: “We do not believe it will happen.”
Yesterday, media outlets in the United States revealed an alleged document, the Executive Order signed by Trump. In this document, Mexican drug trafficking organizations are accused of being responsible for the trafficking of fentanyl, methamphetamine, cocaine, and other drugs, and it also states that they maintain an “intolerable alliance” with the government of Mexico.
Affected Mexican Products and Tariffs
In the same order, it specifies that all products from Mexico will be subject to a 25% tariff. This tax will be in addition to any other tariffs or charges already applied to imported goods. Although this tariff was not activated immediately after Trump’s signature, it was established that it will begin to apply on February 4 at 12:01 AM.
What Happens if Mexico Responds?
Trump also made it clear that if the Mexican government decides to retaliate for this sanction, it could increase or expand the tariffs.
How Could the Tariff Be Removed?
So far, the Mexican government has not announced how it will respond to this measure. However, Claudia Sheinbaum stated that she has given the order to implement a plan to defend Mexico’s interests, both with tariff and non-tariff measures.
The way the tariffs could be removed is if Donald Trump believes that sufficient measures to reduce migrant and drug trafficking have been taken. To evaluate progress at the Mexico-US border, the Secretary of Homeland Security in the U.S. will regularly meet with other key officials, such as the Secretary of State and the Attorney General.
If it is deemed that Mexico has not taken appropriate actions, this team may recommend additional actions.
GIPHY App Key not set. Please check settings