Trump Says Relations With Mexico ‘Are Going Well’
U.S. President Donald Trump during a video message at the Davos World Economic Forum on Thursday, Jan. 23. Photo: YouTube
By KELIN DILLON
During a speech at the Davos World Economic Forum on Thursday, Jan. 23, U.S. President Donald J. Trump said that the United States relations with Mexico are “going well” – just one week before the U.S. federal executive is expected to implement 25 percent tariffs on Mexican goods and days after implementing a series of strict immigration policies in the U.S.-Mexico border.
“We are reaching agreements with Mexico; I think we are doing very well,” said Trump at the time.
Still, despite his statement of positive views on the two countries’ bilateral relations, Trump still indicated that he would demand “respect” from his neighboring trade partners, Mexico and Canada, with his proposed tariffs.
“We don’t need your cars; we don’t need your wood; we have our forests; we don’t need your oil and gas; we have more than anyone else,” Trump said at the time.
The U.S. president tried to lure corporations out of manufacturing in Mexico, which usually comes at a lower cost than in the United States, by floating cuts on U.S. corporate taxes from 21 percent to 15 percent.
“A very simple message to manufacturers: Come to the United States, and here you will find the best possible conditions for your industries,” said Trump. “However, if you do not want to manufacture your product here, you will simply have to pay customs duties of varying amounts that will translate into millions or billions of dollars for our Treasury Department, something we need to strengthen our economy.”
If corporations choose to follow Trump’s direction, it could put a significant dent in Mexico’s nearshoring opportunities.
For her part, Mexican President Claudia Sheinbaum Pardo (CSP) indicated that Mexico would keep a “cool head” until Trump signs a decree formally enacting his tariff threats.
Sheinbaum also said there was “no rush” to renegotiate the United States–Mexico–Canada Agreement (USMCA) before its agreed-upon date in 2026, despite Trump’s push to do so.