Mexico seeks ‘preferential treatment’ on US tariffs

MEXICO CITY: Mexico said Thursday that it wanted preferential treatment if US President Donald Trump goes ahead with steep car tariffs, vowing a “comprehensive response” to Washington’s duties.

President Claudia Sheinbaum said that tariffs were contrary to a North American free trade deal that has led to a booming auto industry in Mexico, which is home to several US-owned car plants.

“Of course, there should be no tariffs within the United States-Mexico-Canada trade agreement. That is the essence of the trade agreement,” she told a news conference.Trump on Wednesday announced a 25 per cent tariff on all cars that are not made in the United States.

“If we are moving to a system of such high tariffs, what we have to look for is preferential treatment for Mexico,” Mexican Economy Minister Marcelo Ebrard said.

That would enable the Latin American country to “protect our jobs and Mexico’s economic activity,” he said, speaking by video link from Washington, where he held talks with senior US officials.

Sheinbaum said that Mexico would wait until early April -- when Trump has promised reciprocal tariffs tailored to each US trading partner -- before giving a “comprehensive response”.“That does not mean that the doors to working with the United States are closed,” she said.

Sheinbaum has repeatedly expressed optimism that US tariffs on Mexican goods can be averted, and Trump has twice granted Mexico tariff relief, which is due to expire in early April.