A tariff war between Mexico and the United States would not be sustainable for either country, since it would only make products more expensive, said Pedro E. Corona de la Fuente, a tax specialist and partner at the Procopio law firm.
Given the possibility that President Donald Trump complies with the implementation of tariffs against Mexico and Canada, the lawyer warned that these would affect the final consumer above all, since it is unlikely that industries will absorb the surplus.
He also pointed out that the imposition of tariffs by the Mexican Government would not be helpful either, since it would only drive up costs for the industry.
In the opinion of the interviewee, some of the most affected products in the case of the Mexican Republic would be the automotive or tractor-trailer industry, as well as oil and energy in the case of Canada and electronic or cell phone products for China.
To impose these tariffs, President Donald Trump would be applying the International Emergency Economic Powers Act (IEEPA), enacted in 1977. This empowers the president to impose economic sanctions, such as the establishment of tariffs or restrict transactions, in the event of an unusual and extraordinary threat to the United States originating from outside the country. According to the interviewee, this is the first time in the history of the United States that a president has used this legislation.