Mexico City, Nov 28 (IANS) US President-elect Donald Trump’s proposal to slap tariffs on Mexico and Canada could threaten the regional job market and create economic uncertainty, the Employers’ Confederation of the Mexican Republic (Coparmex) warned.
Coparmex on Wednesday said that Trump’s repeated tariff threats would impact the region’s economic stability and pose “a direct challenge to the spirit of cooperation and understanding” of the United States-Mexico-Canada Agreement (USMCA), Xinhua news agency reported.
The tariff threats “generate uncertainty in strategic sectors and jeopardise millions of jobs” reliant on trade between the three countries, said Coparmex.
A trade conflict between Mexico and the United States would have ‘devastating effects’ on both economies, especially industries dependent on US inputs such as the automotive and manufacturing sectors, the confederation said, adding that retaliatory measures could impact businesses and consumers in both countries.
“The USMCA should not be seen as a tool for political pressure, but as a strategic agreement that guarantees the region’s competitiveness,” Coparmex said.
On Monday, Trump reiterated his threat to impose a 25 per cent tariff on goods from Mexico and Canada, two of his main trading partners, unless they resolve such issues as immigration or drug trafficking.
In a letter addressed to Trump earlier this week, Mexican President Claudia Sheinbaum said that her country would retaliate with tariffs on US goods if necessary.
–IANS
int/jk/sd