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Trump proposes big import tax, triggering fight with Mexico

Trump proposes big import tax, triggering fight with Mexico

Seemingly provoked by the suggestion, Mexican President Enrique Pena Nieto canceled a visit to the US, which had been scheduled for next week. The Mexican president has repeatedly said Mexico would not pay for the border wall.

Former foreign minister Jorge Castaneda said the Mexican government should have cancelled the planned summit earlier in the week, when it became clear that Mr Trump was going to go ahead with measures to build the wall and clamp down on immigration.

President Donald Trump continued his social media attacks on Mexico on Friday, accusing the country of taking advantage of the U.S.

Prominent political figures in Mexico have suggested the country expel USA law enforcement agents, stop detaining Central American migrants or no longer inspect northbound trucks for drug shipments.

The U.S. trade deficit with Mexico is was $49.2 billion in 2015, according to the U.S. Trade Representative.

A man climbs the fence that divides Mexico and the USA, in Tijuana, Baja California State, Mexico, on September 17, 2014.

A few hours later, Spicer clarified the comment to say he was referring to a plan Speaker of the House Paul Ryan, (R-Wisc.), has said he supports. Mexico is America's third-largest trading partner, with the USA sending $236 billion in goods to Mexico.

On Friday, the starched diplo-speak emanating from Washington and Mexico City appeared to be mutually mirrored, with the exception of one sentence in the Mexican version. For example, senior aide Kellyanne Conway told CBS television that a five to 20 percent tax may be imposed at the border.

In 2015, the US imported $295 billion worth of products from Mexico, according to the government trade data.




"I regret and condemn the decision of the United States to continue construction of a wall that, for years, has divided us instead of uniting us", Pena Nieto said. Regardless of the companies' origins, "we must consume what the country produces".

Trump's threats to impose steep tariffs on Mexican products have ravaged the peso and spread worries about the economy, which is heavily dependent on the U.S. market.

Asked whether the Mexico would walk away from talks if the wall and remittances are an issue, Guajardo said: "Absolutely".

"Imagine those who were in the Pacific alliance who now feel abandoned by the new president of the United States", he said.

Trump's press secretary Sean Spicer said that they were looking for a date to schedule a new meeting in the future.

It is unclear what retaliatory steps Mexico could take if the border tax is approved, because exports to the US are essential to the Mexican economy.

What does the United States import from Mexico?

Who's Going to the Pay For the Wall?

He called for a "modern, not protectionist" national programme of substituting imported products, the vast majority of which come from the United States, but stopped short of calling for a boycott of American goods.

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