MEXICO CITY (Reuters) – Mexico’s Economy Minister Marcelo Ebrard said on Thursday his government was having intensive talks with the United States over Washington’s threats to impose tariffs on goods from its No. 1 trade partner by April 2.
The United States has repeatedly threatened, implemented and paused, tariffs on Mexico, which are expected to have a big impact on both economies, which have become tightly integrated through free trade pacts over the last three decades.
Economists have warned of an increased risk of recession for the United States, Mexico and Canada, as U.S. President Donald Trump’s frequent shifts on tariff policy for the free trade partners deepen uncertainty on their future trade relations.
Speaking at a regular morning press conference, Ebrard said he hoped Mexico would reach April 2 in “better conditions” compared to other countries targeted by U.S. tariffs.
On March 6, Trump offered a reprieve to Mexico and Canada on the blanket 25% tariffs imposed a couple of days earlier, stating that all goods complying with the USMCA trade pact between the three countries would be exempt from any tariffs until April 2.
Ebrard said the United States’ recent implementation of a global tariff on steel and aluminum imports was “a bad idea”, adding the Mexican government will be having meetings with the sector to seek to protect its economy from the trade barriers.
“Many measures can be taken but we will not be taking them carelessly,” Ebrard said.
Mexican President Claudia Sheinbaum, who has taken a calm approach in face of the on-and-off again U.S. tariffs, has said her government will wait until the United States’ decision on April 2 before announcing any potential retaliatory measures.
“We will make the necessary consultations and we will prepare to use all the instruments we have in accordance with what is right for Mexico,” Ebrard said.
He emphasized the need to keep a cool head, saying it was a strategy that had so far borne fruit for Mexico.
(Reporting by Ana Isabel Martinez and Sarah Morland; Editing by Susan Fenton)
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