MEXICO CITY (CN) - President Claudia Sheinbaum said Monday she is confident Mexico and the U.S. can ink a deal to avoid President Donald Trump's threat of 30% tariffs, which he announced over the weekend.
"The letter clearly states that they are seeking an agreement to avoid these tariffs, which are set for August 1st, and we believe, based on what our colleagues discussed yesterday, that we will reach an agreement with the United States government - and that we will, of course, reach better terms," she said in her morning news conference, before urging a cool head in the face of tariff threats.
"We will continue working and hope to reach an agreement. The most important thing for us is that employment is not affected and that cooperation between our countries is maintained," she said.
Trump sent a letter to Sheinbaum on Saturday explaining his plan to impose a 30% tariff on all Mexican imports by Aug. 1 for what he said was Mexico's inability to stop the flow of fentanyl into the U.S.
"Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough. Mexico still has not stopped the Cartels who are trying to turn all of North America into a Narco-Trafficking Playground," he wrote.
Trump also said he is open to a commercial agreement rather than imposing the tariffs, as Sheinbaum noted.
"As you are aware, there will be no Tariff if Mexico, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely - In other words, in a matter of weeks," he wrote.
Trump also announced a 30% planned tariff on goods from the European Union, and a 35% tariff on Canadian goods.
On Saturday, Mexican Economy Secretary Marcelo Ebrard announced that binational negotiations are underway to avoid the tariffs, which he and the Mexican delegation of secretaries involved in the discussions deemed unfair.
He wrote in a news release that other topics in the talks included security, migration, the border and water management.
Trump's newest tariff threat is part of a long saga related to border security, an area where Sheinbaum has cooperated.
On Feb. 3, she managed to postpone a 25% tariff on all Mexican imports by sending 10,000 troops to the northern border in an ongoing operation called Operation Frontera Norte. In exchange, the U.S. pledged to investigate the nation's role in gun trafficking into Mexico.
The Wilson Center reports that the U.S. Government Accountability Office estimates half of all traceable firearms found in Mexico between 2016 and 2022 were manufactured in the U.S.
A "Way of the Gun" report from 2013 found an estimated 250,000 guns were purchased in the U.S. to be trafficked to Mexico each year between 2010-12, compared with 88,000 annually between 1997-99.
Legal sales are also abundant. In 2020, American arms manufacturer Sig Sauer exported 50,000 pistols for use by Mexico's National Guard.
On Feb. 27, Sheinbaum's government extradited 29 cartel leaders to the U.S.
Mexican government data shows authorities have arrested 5,158 people and seized 97,000 pounds of drugs - including 658 pounds of fentanyl - in Operation Northern Border since Feb. 5.
Despite Mexico's actions, Trump confirmed a first round of tariffs against Canada and Mexico on March 3, causing the Dow Jones Industrial Average to drop by over 800 points.
Sheinbaum responded the next day with a rally to announce her economic response in Mexico City's large public square to push back against planned 25% tariffs on all Mexican imports. The meeting quickly turned into a celebration as Trump walked back the plan for the second time.
In April, Trump included Mexico in his 10% worldwide tariff and issued 25% tariffs on Mexican automobiles, causing U.S. automaker Stellantis to halt activity at its plant in Toluca, Mexico.
Source: Courthouse News Service
