Mexican Foreign Minister Luis Videgeray has vowed to fight fire with fire over Trump’s recent statements concerning the levying of unilateral taxes on Mexican imports. The Minister, during a press conference, said that the Mexican government could place tariffs on selected goods from the United States that were highly dependent on exports to Mexico.
The warning to the United States comes after President Trump’s earlier statement that vowed to start the building of the wall “soon, way ahead of schedule.” The U.S. government has said it would begin accepting proposals next month. This statement has been backed by the U.S. Customs and Border Protection Agency. The agency, in charge of implementing the wall’s building under the government, has said it will ask interested companies to submit proposals “for the design and build of several prototype wall structures.” This shall occur on or around March 6th this year.
Two weeks from the date of proposal submissions, the government will draw up a shortlist of the best designs for the wall and ask companies to give quotations for their designs. After this March 20th occurrence, contracts to commence the wall’s construction are expected to be awarded by mid-April.
Trump recently echoed his promise for the wall’s construction at the Conservative Political Action Congress in Maryland on Friday. Amongst promises to always put Americans first, he said he would build a “great, great border wall.”
“We’re building the wall,” Trump said to those gathered in Maryland for the Congress. “In fact, it’s going to start very soon. Way ahead of schedule. It’s way, way, way ahead of schedule,” he added.
President Trump has repeatedly pledged that the Mexican government would pay for the wall’s construction. This would cost Mexico an estimated $21.5 billion according to Reuters, who cited an internal report from the Department of Homeland Security for their cost estimate. This is $9.5 billion higher than Trump’s past estimate of $12 billion.
The United States plans to get the funding from Mexico by placing a 20% tax on Mexican imports. This goes against the Free Trade Agreement between Mexico, the United States, and Canada.
During a radio interview on Friday, Videgeray responded to the claim. He said that “Mexico believes in free trade,” but “would have to respond” if the United States tried to impose a tax on Mexican imports. “What we cannot do is remain with our arms crossed,” he also said during the interview.
Reports have stated that Iowa, Texas, and Wisconsin have previously been identified as some of the U.S. states that would bear the brunt of tariffs in retaliation to taxes on Mexican imports. This is a statement the U.S. government would have to take seriously. Mexico is the top destination for Texan imports. According to the U.S. Department of Commerce, $92.4 Billion worth of goods has been exported there in 2015.
The wall seeks to replace the current 650 miles of the fence at the U.S-Mexico border and fully cover the border’s remainder. It has been a sensitive topic within Mexico’s politics and was the cause of Mexican President Enrique Pena Nieto canceling a trip to meet Trump last month. Both sides have continually refuted responsibility in funding the wall’s construction.
Last Thursday, U.S. Secretary of State Rex Tillerson and Homeland Security Secretary John Kelly met their Mexican counterparts behind closed doors in Mexico City. In a news conference after the meeting, none of the sides mentioned the construction of the wall.
President Trump requires approval from Congress for funding before he can commence the building of the wall.
