This article is more than 1 year old

This article is more than 1 year old

Mexico’s president hinted on Saturday that his country could tighten migration controls in order to defuse Donald Trump’s threat to impose tariffs on Mexican goods. Andrés Manuel López Obrador also said he expected “good results” from talks in Washington next week.

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Trump says he will apply the tariffs on 10 June if Mexico does not halt the flow of illegal immigration, largely from Central America, across the US border.

His ultimatum hit Mexican financial assets and global stocks but met resistance from US business leaders and lawmakers worried about the impact of targeting Mexico, a top trade partner.

In a news conference in the Gulf of Mexico port of Veracruz, López Obrador said Mexico could be ready to step up measures to contain a recent surge in migration in order to reach a deal with the US.

A major Mexican delegation led by the foreign minister, Marcelo Ebrard, will discuss the dispute with US officials in Washington on Wednesday. López Obrador said he expected “good results” from the talks, and for a deal to emerge.

We’re doing all we can to reach a deal through dialogue. We’re not going to get into a trade war Andrés Manuel López Obrador

“The main thing is to inform about what we’re already doing on the migration issue, and if it’s necessary to reinforce these measures without violating human rights, we could be prepared to reach that deal,” López Obrador said.

His comments follow those of Jesús Seade, deputy foreign minister for North America, who said on Friday Mexico wanted to sharpen existing measures to curb the flow of Central Americans trying to reach US soil.

Trump’s threat to inflict pain on Mexico’s economy is the biggest foreign policy test to date for López Obrador and a tall order for Mexican authorities struggling not only to contain migration but also to fight record gang violence.

Mexico’s economy relies heavily on exports to the US and shrank in the first quarter. Under Trump’s plan, US tariffs that could rise as high as 25% this year.

López Obrador said Mexico would not pursue trade wars with the US, but noted that his government had a “plan” in case Trump did apply the tariffs. He did not provide details of the plan.

“We’re doing all we can to reach a deal through dialogue,” he said. “We’re not going to get into a trade war, a war of tariffs and of taxes.“

He nevertheless noted that Mexico reserved the right to seek international legal arbitration to resolve the dispute.

Some Mexican business groups have urged the government to strike back against any Trump tariffs. On Friday, Mexico’s top farm lobby said López Obrador should target agricultural goods from states that support Trump’s Republican party if the American leader carries out his threat.

Apprehensions at the US border with Mexico have surged in recent months, though Mexican data also show more deportations and detentions at Mexico’s southern border with Guatemala, mostly of Central Americans trying to reach the US illegally.

Those statistics are likely to figure in the Mexican government’s argument that it is addressing the problem.

The bulk of migrants are fleeing widespread violence and poverty in Guatemala, Honduras and El Salvador. Many seek asylum in the US when they cross the border. Trump is pushing Congress to change US law to make it more difficult for the migrants to claim asylum.

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The president, who has embraced protectionism as part of an “America First” agenda aimed at reshaping global trade, said in a tweet on Thursday he would ratchet up tariffs on Mexico “until the illegal immigration problem is remedied”. The plan would impose a 5% tariff on Mexican imports starting on 10 June and increase monthly, up to 25% on 1 October.

López Obrador was asked whether he would allow Mexico to become a so-called safe third country, which would allow US authorities to send migrants back to Mexico and make them apply for asylum there. He did not answer the question, but pressure has grown steadily on his government to give ground on the issue.

Following an agreement with López Obrador, US authorities have since January begun sending migrants back to Mexico to wait there while their US asylum claims are being processed. The number of ports of entry for returnees under the so-called Remain in Mexico policy has gradually increased, and policy experts say it could be expanded to more cities.