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Trump’s Proposal to Impose Tariffs on Mexican Imports Creates Widespread Concern

LADB Article ID: 80196
Category/Department: Mexico
Date: 2017-02-01
By: Carlos Navarro

US President Donald Trump’s administration has threatened to impose a 20% tariff on all Mexican imports, a move that could cause major disruptions to trade between the two countries and increase the cost of many goods for US consumers. Trump’s presidential spokesperson, Sean Spicer, raised the possibility of the tariff after Mexican President Enrique Peña Nieto cancelled a meeting with Trump that had been scheduled for the end of January. At the meeting, Trump was reportedly going to press Peña Nieto for a commitment to pay for the construction of a massive wall along the US-Mexico border, a project that would cost as much as US$25 billion. Spicer raised the possibility that the Trump government might impose the tax during conversations with beat reporters. Economic and political observers generally agree that imposing a 20% tariff would have negative repercussions on both the Mexican and US economies, but particularly on the latter. “Who is going to pay? US consumers, because prices are going to increase a little bit,” said Gabriel Casillas, chief economist at Grupo Financiero Banorte.

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