US President-elect Donald Trump’s proposal to impose tariffs on Mexico and Canada could threaten the regional job market and create economic uncertainty, the Confederation of Employers of the Mexican Republic (Coparmex) warned on Wednesday.
MEXICO CITY, Nov. 28 (Xinhua) — U.S. President-elect Donald Trump’s proposal to impose tariffs on Mexico and Canada could threaten the regional job market and create economic uncertainty, the Confederation of Trade and Commerce warned on Wednesday. employers of the Mexican Republic (Coparmex).
Coparmex said Mr Trump’s repeated tariff threats would impact the region’s economic stability and constitute “a direct challenge to the spirit of cooperation and understanding” of the US free trade agreement. -Mexico-Canada (USMCA).
Tariff threats “generate uncertainty in strategic sectors and endanger millions of jobs” which depend on trade between the three countries, according to Coparmex.
A trade conflict between Mexico and the United States would have “devastating effects” on both economies, particularly in sectors that depend on American inputs, such as the automobile and manufacturing sectors, the confederation said, adding that retaliatory measures could impact businesses and consumers in both countries.
“The USMCA should not be considered as a tool of political pressure, but as a strategic agreement that guarantees the competitiveness of the region,” stressed Coparmex.
Mr. Trump on Monday reiterated his threat to impose 25% tariffs on goods from Mexico and Canada, two of his biggest trading partners, unless they resolve issues such as immigration or drug trafficking.
In a letter to Mr. Trump earlier this week, Mexican President Claudia Sheinbaum warned that her country would retaliate with retaliation against American products, if necessary.
