Mexico City, March 5 Mexico's economy is "strong" and has significant reserves to withstand the 25 per cent tariffs on Mexican products the US put in force starting from Tuesday, Mexican President Claudia Sheinbaum said.
The President called on Mexicans to remain calm amid the latest US trade measure and assured that her government will protect Mexico's economy through a variety of schemes to defend the national industry without resorting to a trade war, Xinhua news agency reported.
Speaking at the National Palace in Mexico City on Tuesday, Sheinbaum acknowledged the tariffs will have an impact but added that internal growth is driven by domestic consumption, by job creation through public investment, by the increase in the minimum wage and by social welfare programmes.
She reiterated that consumers in the US stand to lose the most from US President Donald Trump's decision to impose tariffs on goods from Mexico and Canada, since those consumers will see an increase in the price of different products, from cars to computers, refrigerators and monitors, among other items.
On Thursday, March 6, Sheinbaum said that she is scheduled to speak by phone with Trump in a bid to lift the 25 per cent tariff that took effect on Tuesday.
"Mexico exports ... a very significant portion of what Americans consume, particularly cars, but this export has to do with commercial and productive integration," she added.
"It is not that complete cars are manufactured here and sent to the United States, but that auto parts are manufactured partly here, then they go to the United States, then they return ... and then they are put together at assembly plants, either here or in the United States," she said.
Mexico and the US have "very important economic integration" that has been strengthened in the last 40 years, noted Sheinbaum.
The President added that she was confident the issue of tariffs could be resolved before Mexico announces the measures it will take against the US, which, while they are not designed to start an "economic confrontation," will impact both countries.
"What is produced here, when it goes to the United States is going to cost the United States 25 per cent more ... if we put the same tax on return, then it will cost another 25 per cent to return it, and to send it again, another 25 per cent," said Sheinbaum, arguing it would make products more expensive.
Instead of tariffs, regional countries should promote "greater economic integration" because "together we become stronger," she added.
The President called on Mexicans to attend a rally on Sunday, March 9, at Mexico City's central plaza, where she plans on announcing measures of interest to the public.
--IANS
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor