Trump Swaps The Wall For Mexico Trade Tariffs

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Written By Hossein Soltani

US President Donald Trump seems to have cooled off talking about The Wall between the States and Mexico and turned his attention to tariffs squeezing trade across the border between the two countries.

The Wall is a likely lost cause as the Democrats have a hold on Congress and refuse to budge on the $15 billion of funding Trump wants for his Wall.

The alternative is trade tariffs penalising Mexico’s exports.

Trump plans to put a 5% tariff on all Mexican goods from June 10 unless the government acts to halt the supply of drugs and flow of illegal immigrants coming across the border.

If Mexico fails to stem the tide, the tariffs will increase by 5% each month until they reach a maximum of 25%.

Negotiating ploy

The policy follows Trump’s usual ploy when dealing with foreign countries rejecting his demands.

The US is in a trade dispute with China, with tariffs levied against billions of pounds of goods, while Trump also threatened tariffs against the EU in a row over cheap steel and car imports.

He also has disagreements with North Korea and Iran, both are suffering trade sanctions.

The government in Mexico claims action is underway to stop immigrants from farther south in Latin America using the country as a stepping stone to enter the US.

Foreign Minister Marcelo Ebrard said: “”From Washington I can report that we have made progress during meetings with cabinet members, private think tanks, specialists. We are working hard to reach an understanding. It’s doable and desirable. 80/20 chances in favour of doing it.”

Strained relations

Trump has confirmed officials are taking to Mexican delegates while he visits the UK and France for a state visit around the 75thD Day anniversary.

US Commerce Secretary Wilbur Ross, has met with Mexico’s Economy Secretary Graciela Marquez, telling her that Mexico needed to address illegal immigration.

Mexico exported goods totalling $352 billion to the US last year – the second largest amount behind China.

Relations between the countries have been strained, with Trump claiming Mexico is failing to stop people reaching the border.

As a result, Trump declared a national emergency at the US-Mexico border in February.