Mexican employers caution of financial risks from Trump's proposed tariff
Date
11/28/2024 3:59:30 AM
(MENAFN) The Employers' Confederation of the Mexican Republic (Coparmex) has expressed concern over US President-elect Donald Trump's proposal to impose tariffs on Mexico and Canada, warning that it could disrupt the regional job market and create economic instability. Coparmex stated that Trump's repeated tariff threats could undermine the economic stability of North America and challenge the cooperative spirit of the United States-Mexico-Canada Agreement (USMCA).
The confederation emphasized that these tariff threats could generate significant uncertainty in key sectors, putting millions of jobs at risk that rely on the strong trade ties between the three nations. A potential trade conflict between Mexico and the US would be particularly harmful to industries reliant on US inputs, such as the automotive and manufacturing sectors, Coparmex noted. It added that retaliatory tariffs could negatively affect businesses and consumers in both countries.
Coparmex called for the USMCA to be viewed not as a political tool but as a critical strategic agreement that ensures the region’s competitiveness. The organization warned that using the trade deal as leverage for political gains could have far-reaching consequences for both economies.
On Monday, Trump reiterated his stance on imposing a 25-percent tariff on goods from Mexico and Canada unless they address issues like immigration and drug trafficking. In response, Mexican President Claudia Sheinbaum sent a letter to Trump, signaling that Mexico would retaliate with tariffs on US goods if necessary.
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