The United States’ border countries are reportedly gearing up to talk trade this coming summer in an effort to renegotiate the North American Free Trade Agreement, but Mexico has a staunch message for the U.S.
In an interview with Bloomberg, Mexico’s senior trade negotiator, Ildefonso Guajardo, stated his country would walk away from NAFTA altogether if tariffs like what President Donald Trump have proposed are implemented. Specifically, the president has called for a 20 percent tariff on vehicles made in Mexico that are shipped back to the U.S.
“The moment that they say, ‘We’re going to put a 20 percent tariff on cars,’ I get up from the table,” Guajardo said in an interview. “Bye-bye.”
The senior trade negotiator also stated if talks do go south (no pun intended), “it wouldn’t be an absolute crisis.” At that point, the U.S. and Mexico would be regulated by the World Trade Organization, which allows a maximum tariff placed on a country to be capped at three percent. A tariff would also raise the prices of U.S. goods made in Mexico for consumers.
Much of the Mexico-made banter originated from President Trump calling out General Motors over the production of the 2017 Chevrolet Cruze hatchback. The hatch is made in Mexico, while the sedan is built in Lordstown, Ohio. Since then, GM has defended its position and stated it would not be shifting production to the U.S.