On Monday evening, the US authorities introduced its intention to withdraw from a commerce settlement with Mexico and impose a 17% tariff on Mexican tomatoes, Commerzbank’s FX analyst Michael Pfister notes.
Risk of tariffs has not been averted
“The Mexican authorities criticised this as a politically motivated transfer, whereas Mexican farmers emphasised that tomato costs within the US are more likely to rise because of this. Tomatoes are actually not an important commodity.”
“Nevertheless, this transfer makes it clear as soon as once more that, regardless of all of the reward from Washington for negotiations with Mexico being rather more nice than with Canada, the specter of tariffs has not been averted.”
“Variations in relations nonetheless exist. The great relationship between the Mexican president and Trump could be sure that Mexico finally ends up with decrease tariffs than Canada. However, this alone is inadequate to utterly avert the specter of tariffs.”
