Mexican President Claudia Sheinbaum said Friday that talks with the United States on reducing tariffs on her country’s products were “advancing” after a new telephone call with President Donald Trump.
The left-wing Sheinbaum told reporters she had talked to Trump 22 times in the nearly two years since she took office.
Their most recent call this week, which she described as “very good,” comes on the eve of further planned talks on the future of a three-decade-old U.S.-Canada-Mexico free trade agreement that Trump considers not favourable enough to the United States.
While most Mexican goods have been relatively spared by his tariffs cudgel, he has imposed 50-per cent levies on aluminum and steel from Mexico and also targeted the country’s auto sector, despite their trade pact.
“We hope to reach an agreement” on “at least a reduction in the tariffs we currently have,” Sheinbaum said.
Mexico is desperate to preserve its preferential trade access to the United States, which absorbs around 80 per cent of Mexican exports, even as Washington and Canada trade blow after blow in a fiery trade war.
The situation is being closely watched by foreign investors, many of whom use Mexico as a tariff-free back door into the U.S. market.
Trump has threatened to further hike tariffs on Mexico, which he accuses of not doing enough to halt the flow of migrants and drugs over the border.
He has repeatedly offered to send U.S. troops to fight the cartels.
Sheinbaum has ruled out a U.S. military intervention, emphasizing that Mexico’s sovereignty is not up for discussion.
