Mexico: Trade pressures from the US - TDS
|TD Securities analysts note that the US President Trump unexpectedly announced that the US administration will impose and then increase tariffs on all Mexican goods until illegal migration flows from the country are stopped.
Key Quotes
“Trump said that, if the crisis persists, a 5% tariff will be imposed on all Mexican imports starting on June 10. Tariffs will then be raised to 10% on July 1, to 15% on August 1, to 20% on September 1 and to 25% on October 1. As Mexico exports approximately 80% of its total exports to the US, the imposition of tariffs would have a dramatic impact on its economy, and uncountable ripple effects.”
“Asked to provide his view on the matter, Jesus Seade, Mexico's undersecretary of foreign relations for North America, responded to reporters that Mexico won't "sit on [its] hands" but hopes the threat is "not something that will be put into action" otherwise Mexico will "need to respond in a strong way."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.