Mexico will 'immediately' respond to any US border tax imposed by Donald Trump, minister says
Posted
Mexico must be ready to respond immediately with its own tax measures if the incoming administration of President-elect Donald Trump imposes a border tax, the country's Economy Minister says.
Mr Trump, who takes office on January 20, on Wednesday promised a "major border tax" on companies that shift jobs outside the United States, and such a measure could hobble Mexico's exports to its top trading partner.
"It is clear we need to be prepared to immediately neutralise the impact of such a measure," Economy Minister Ildefonso Guajardo said in an interview on Mexican television.
"And it is very clear how: take a fiscal action that clearly neutralises it."
Mr Guajardo said Mr Trump's proposed tax "was a problem for the entire world" and that it "would have a wave of impacts that could take us into a global recession".
He has warned that US corporate tax cuts proposed by Mr Trump, as well as the border tax, could undermine foreign investment in Latin America's number two economy.
Mexico slapped a tax on US high fructose corn syrup in the early 2000s after the United States refused to allow free trade in Mexican sugar.
Meanwhile, Mexico has appointed another ambassador to the United States just days before Mr Trump takes office.
The Government said in a statement that the new envoy to Washington would be Geronimo Gutierrez, who held senior posts in two previous Mexican administrations headed by the opposition.
The nomination of Mr Gutierrez, which must be ratified by the Senate, suggested that President Enrique Pena Nieto hopes to shore up cross-party political support before he faces Mr Trump.
Reuters
Topics: world-politics, us-elections, mexico
