Tag Archives: Illegal Immigration

Trump promises more ‘to be revealed’ in U.S.-Mexico deal

FILE PHOTO: U.S. President Donald Trump speaks to reporters upon departure from the White House in Washington, U.S., May 30, 2019. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump on Tuesday stood by his comments that part of the migrant deal with Mexico announced over the weekend had yet to be made public, even after Mexican officials unveiled new details of the agreement.

“Biggest part of deal with Mexico has not yet been revealed!” Trump tweeted without giving further details. Representatives for the White House did not immediately respond to a request for comment on Trump’s statement.

On Monday, Trump also said Mexico would soon disclose part of the agreement with no details other than saying that portion would have to be taken up by the Mexican Congress.

Announcing previously undisclosed details of Friday’s deal, Mexican officials said on Monday they had 45 days to show that increased enforcement efforts were effective in reducing flows of migrants. If not, they would have to talk with the United States about additional measures.

The United States wants Mexico to be declared a safe third country in which asylum seekers would have to seek safe harbor instead of the United States, a demand Mexico had long rejected.

Mexican Foreign Minister Marcelo Ebrard dropped his previous opposition to that idea in comments on Monday but said any such arrangement should share the asylum load with other Latin American countries.

He said these measures would have to be taken up with the Mexican Senate.

“If we don’t have results on what we’re doing (in 45 days), we’ll start conversations on what they want,” Ebrard said.

The deal struck on Friday averted import tariffs on all Mexican goods, which Trump had vowed to impose unless Mexico did more to curb migration.

(Reporting by Susan Heavey; Editing by Doina Chiacu and Andrea Ricci)

Mexico to ramp up southern border infrastructure to tackle migration

FILE PHOTO: Mexico's Foreign Minister Marcelo Ebrard speaks during a news conference at the National Palace in Mexico City, Mexico June 10, 2019. REUTERS/Gustavo Graf

MEXICO CITY (Reuters) – Mexico must significantly improve border infrastructure on its southern frontier with Guatemala to make a success of a deal struck last week with the United States to reduce migration, Mexico’s foreign minister Marcelo Ebrard said on Tuesday.

Speaking at a regular government news conference, Ebrard said not enough priority had been given to Mexico’s southern border in the past and that the state needs to have a stronger presence across the frontier to deal with migrant flows.

Mexico and the United States signed an agreement on Friday, with Mexico agreeing to take steps to control the flow of people from Central America, including deploying 6,000 members of a new national guard across its border with Guatemala.

The deal averted escalating import tariffs of 5% on Mexican goods, which U.S. President Donald Trump had vowed to impose unless Mexico did more to curb migration.

Still, Mexico’s government said on Monday it had 45 days to show its measures were yielding results.

Taking questions alongside President Andres Manuel Lopez Obrador, Ebrard said Mexico was accelerating deployment of the national guard along the border with Guatemala and that migrants entering Mexico would all have to register with authorities.

To meet its commitments to Washington, Mexican migration facilities in the south need to be revamped, Ebrard added.

“There must be a different presence of the Mexican state in the south,” he told reporters, noting that the infrastructure along the southern frontier with Guatemala had for years been neglected while Mexico’s northern border was being modernized.

“You go to the south and the first thing you ask yourself is ‘right, where’s the border?’ There’s nothing. The idea is to make the south like the north as far as possible.”

Ebrard said there would need to be provisional installations built before rolling out a broader plan to cope with the flow of migrants arriving from Central America. “Because the reality is that a very big effort needs to be made,” he said.

(Reporting by Dave Graham; Editing by Hugh Bronstein and Susan Thomas)

Mexico Immigration deal reached, Trump says must be approved or tariffs

Central American migrants cross the Suchiate river on a raft from Tecun Uman, in Guatemala, to Ciudad Hidalgo, as seen from Ciudad Hidalgo, Mexico, June 10, 2019. REUTERS/Jose Cabezas

By Makini Brice

WASHINGTON (Reuters) – President Donald Trump on Monday hinted more details were to come about a migration pact the United States signed with Mexico last week, saying another portion of the deal with Mexico would need to be ratified by Mexican lawmakers.

He did not provide details but threatened tariffs if Mexico’s Congress did not approve the plan.

“We have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico’s legislative body,” Trump tweeted.

“We do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, tariffs will be reinstated.”

Last month, Trump threatened 5% tariffs on Mexican goods to be imposed on Monday. The duties would have increased every month until they reached 25% in October, unless Mexico stopped illegal immigration across its border with Mexico.

On Friday, the tariffs were called off, after the United States and Mexico announced an agreement on immigration. The joint communique issued by the two countries provided few details.

Critics have said there have been no new major commitments to slow the migration of Central Americans to the United States.

FILE PHOTO: Trucks cross the borderline into the U.S. and into Mexico at the World Trade Bridge, as seen from Laredo, Texas U.S., June 3, 2019. REUTERS/Carlos Jasso

FILE PHOTO: Trucks cross the borderline into the U.S. and into Mexico at the World Trade Bridge, as seen from Laredo, Texas U.S., June 3, 2019. REUTERS/Carlos Jasso

The agreement would expedite a program known as the Migration Protection Protocols, which sends people seeking asylum in the United States to wait in Mexico as their cases are processed.

That program, announced in December, would be expanded across the entire U.S.-Mexico border under the terms of the agreement, according to the State Department.

The deal would also send the Mexican National Guard police force to its own southern border, where many Central Americans enter Mexico.

“We’re very pleased with this agreement. It has an enforcement mechanism. It has an enforcement feature to it because these tariffs can go on at any time,” White House adviser Kellyanne Conway said in an interview with Fox News Channel.

Mexican Foreign Minister Marcelo Ebrard wrote in a tweet on Monday morning that he would brief the Mexican President Andres Manuel Lopez Obrador on the details of the agreement.

Ebrard said Lopez Obrador would discuss the deal during his morning news conference.

Marta Barcena Coqui, the Mexican ambassador to the United States, said in an interview with CBS’ “Face the Nation” on Sunday that Mexican officials had agreed to take steps to reduce illegal immigration “to previous levels that we had maybe last year or in 2018.”

During the talks last week, Mexican sources said officials were resisting safe third country status, which would mean migrants seeking asylum would have to make such a request in the first safe country they crossed.

Under such safe third country status, that country for many Central American migrants fleeing poverty, violence and corruption in their native countries would be Mexico.

Such a change would require legal changes that would take at least 90 days and would need to be ratified by Mexico’s Congress.

(Reporting by Makini Brice; Additional reporting by Doina Chiacu in Washington and Frank Jack Daniel in Mexico City; Editing by Larry King and Chizu Nomiyama)

U.S.-Mexico migration talks continue as tariff deadline looms

Mexico's Foreign Minister Marcelo Ebrard exits the U.S. State Department to speak to reporters after a meeting between U.S. and Mexican officials on immigration and trade in Washington, U.S., June 6, 2019. REUTERS/Leah Millis

By Susan Heavey and Anthony Esposito

WASHINGTON/MEXICO CITY (Reuters) – U.S. and Mexican negotiators resumed migration talks on Friday as the two sides edged closer to a trade war that could hobble both countries’ economies and rattle investors already nervous about Washington’s escalating battle with China.

U.S. President Donald Trump has warned that tariffs of 5% will be imposed on all Mexican exports to the United States on Monday if Mexico does not step up efforts to stem an increase in mostly Central American migrants heading for the U.S. border.

“As negotiations continued yesterday, we were more encouraged that they came forward with some of the things we put on the table Wednesday to say they were open to that,” Marc Short, chief of staff to U.S. Vice President Mike Pence, told reporters outside the White House.

Short added that the Trump administration planned to move forward with a legal notification of its planned 5% tariff on Mexican goods. “You should anticipate that happening today,” he said.

White House press secretary Sarah Sanders said while the meetings had gone well, “we’re still on track for tariffs on Monday.”

Trump, who has railed against what he describes as a surge of migrants across the U.S.-Mexico border, will have the final say over any deal, Pence said on Thursday. Pence also said progress had been made in the talks but gave no specifics.

Trump is returning to Washington on Friday after a week-long trip to Europe.

The U.S. president has threatened to continue raising the tariffs on Mexico after the initial levies go into effect on June. 10 if a migration deal fails to materialize.

Mexico, whose economy is heavily dependent on trade with the United States, is scrambling to avoid such a scenario.

“It’s a good sign that talks have not broken down,” Mexican President Andres Manuel Lopez Obrador told reporters in Mexico City. “There is dialogue and an agreement can be reached. I’m optimistic we can achieve that.”

Lopez Obrador, however, said it was a mistake for the United States to link migration with trade.

Mexico has prepared a list of possible retaliatory tariffs targeting U.S. products from agricultural and industrial states regarded as Trump’s electoral base, a tactic China has also used with an eye toward the president’s 2020 re-election bid.

That would put the United States in a serious trade dispute with its southern neighbor and China – two of its three top trading partners.

The United States slapped up to 25% tariffs on $200 billion in Chinese imports last month, prompting Beijing to levy its own tariffs on a revised target list of $60 billion in American goods.

Trump said on Thursday he would decide later this month whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods.

U.S. officials officially granted Chinese exporters two more weeks to get their products into the United States before increasing tariffs on those items, according to a U.S. government notice posted online on Friday.

OPPOSITION

U.S. business groups are generally opposed to the escalation of the trade tensions, warning that the tariffs will raise costs for companies and lead to higher prices for American consumers. Trump’s fellow Republicans also are not keen on the tariffs.

Economists warn that the trade wars could damage key supply lines and lead to a further slowdown of the global economy. Even the United States, one of the more solid performers on the economic stage, would suffer.

The U.S. Labor Department reported on Friday that job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labor market.

Global equities rose on Friday on the prospect that central banks, including the U.S. Federal Reserve, would loosen monetary policy to offset trade frictions and the threat of global recession.

Analysts warn that tariffs could spark a recession in Mexico. Credit ratings agency Fitch downgraded Mexico’s sovereign debt rating on Wednesday, citing trade tensions among other risks, while Moody’s lowered its outlook to negative.

Ahead of the 2020 U.S. presidential election, Trump is eager to show progress on his 2016 campaign pledges to take a hard line on immigration. Apprehensions at the U.S.-Mexico border hit a decade high in May.

(Reporting by Susan Heavey and Doina Chiacu in Washington, Anthony Esposito in Mexico City and Steve Holland in Shannon, Ireland; Writing by Paul Simao; Editing by Susan Thomas)

Mexico freezes bank accounts in widening migration clampdown

Border patrol agents apprehend people who illegally crossed the border from Mexico into the U.S. in the Rio Grande Valley sector, near Falfurrias, Texas, U.S., April 4, 2018. REUTERS/Loren Elliott

MEXICO CITY (Reuters) – The Mexican Finance Ministry said on Thursday it blocked the bank accounts of 26 people for their alleged involvement in human trafficking, as Mexico broadens its migration clampdown amid growing pressure from U.S. President Donald Trump.

The ministry’s Financial Intelligence Unit (FIU) said in a statement it froze the accounts due to “probable links with human trafficking and illegal aid to migrant caravans.”

The FIU added that it would present the cases to the Attorney General’s office.

Last week, Trump said the Mexican government must take a harder line on migrants or face 5% tariffs on all its exports to the United States from June 10, rising to as much as 25% later this year.

(Reporting by Anthony Esposito; Editing by David Alire Garcia)

U.S. holds out for more from Mexico in talks over tariffs, border

By Roberta Rampton

WASHINGTON (Reuters) – Mexican and U.S. officials are set to resume talks on trade and migration on Thursday, with the United States resisting calls from its southern neighbor, businesses and some Republican lawmakers to ease up on a plan to impose import tariffs on Mexico.

Vice President Mike Pence, who led an initial round of negotiations in Washington on Wednesday, said talks were positive but emphasized the Trump administration still wants Mexico to commit to working harder to combat illegal immigration.

“We welcomed the efforts of the Mexican officials to offer solutions to the crisis at our southern border, but we need Mexico to do more,” Pence said on Thursday.

He was echoing President Donald Trump, who said on Wednesday that “not nearly enough” progress was made in the first round of talks, and warned that the tariffs would go into effect on Monday if Mexico cannot help stem the flow of mostly Central American migrants heading for the U.S. border.

Last week, Trump said Mexico must take a harder line on migrants or face 5% tariffs on all its exports to the United States from June 10, rising to as much as 25% later this year.

The unexpected announcement rattled global financial markets and even Trump’s fellow Republicans fretted about the potential economic impact on U.S. businesses and consumers who would have to absorb the costs.

MEXICO ECONOMY

Mexico would also take an economic hit that analysts warn could spark a recession. Credit ratings agency Fitch downgraded Mexico’s sovereign debt rating on Wednesday, citing trade tensions among other risks, while Moody’s lowered its outlook to negative.

Staff-level meetings are scheduled to begin at 2 p.m. (1800 GMT) on Thursday with Mexican officials at the White House, a White House official said. Mexican Foreign Minister Marcelo Ebrard earlier had meetings at the U.S. State Department.

The immigration issue came into sharper focus on Wednesday with news that U.S. border officers said they apprehended more than 132,000 people crossing from Mexico in May, the highest monthly total in more than a decade and reaching what officials said were “crisis” levels.

German bond yields fell to new lows on Thursday and U.S. treasury yields resumed their fall as trade tensions doused a rally fueled by hopes for more central bank stimulus ahead of a European Central Bank meeting. [US/]

Sentiment had soured on a lack of progress in talks between U.S. and Mexican officials, and Trump issuing a fresh threat to hit China with tariffs on at least another $300 billion worth of goods.

With Trump on a trip to Europe until Friday night, a quick agreement in the U.S.-Mexico talks is not anticipated by the U.S. side, although Mexican President Andres Manuel Lopez Obrador struck a positive note.

“The U.S. authorities have behaved very well, (including) President Trump, because they haven’t closed themselves off to dialogue and we hope that a deal is reached today,” he told a news conference on Thursday.

Nevertheless, Mexican officials have prepared a list of U.S. products that may face retaliatory tariffs if talks do not end in agreement.

The tariffs would target U.S. products from agricultural and industrial states regarded as Trump’s electoral base, a tactic China has also used with an eye toward the Republican’s re-election bid in the 2020 U.S. presidential election.

Mexico ramped up efforts to halt the flow of Central American migrants crossing the border to the United States on Wednesday, with Mexican soldiers, armed police and immigration officials blocking migrants along its own southern border with Guatemala.

It was unclear whether the hardening of Mexico’s response would appease Trump, who is struggling to make good on his key 2016 presidential campaign promise to build a wall along the U.S.-Mexico border as part of a hard-line immigration stance.

Senator Chuck Grassley, Republican chairman of the finance committee, had expressed hope on Wednesday of a quick deal with Mexico but he was more cautious on Thursday.

“The fact that there wasn’t any agreement probably isn’t surprising as long as they are going to be here two or three days,” said Grassley, one of several Republican lawmakers who have expressed concern about imposing tariffs on Mexico.

(Reporting by Roberta Rampton in Washington; Additional reporting by Alexandra Alper, Susan Cornwell and Lesley Wroughton in Washington and Anthony Esposito and Diego Ore in Mexico City; Writing by Alistair Bell; Editing by Bernadette Baum and James Dalgleish)

Hope grows for deal to avoid U.S. tariffs on Mexican goods

Trucks cross the borderline into the U.S. before border customs control at the World Trade Bridge, as seen from Laredo, Texas U.S., June 3, 2019. REUTERS/Carlos Jasso

By Doina Chiacu and Richard Cowan

WASHINGTON (Reuters) – Hope grew on Wednesday for a deal to avoid the United States imposing tariffs on Mexican goods in return for Mexico doing more to halt illegal immigration but President Donald Trump said he was willing to go ahead with the import duties if he is not satisfied.

Trump said he thinks Mexico wants to reach an agreement to stop a new trade war – one that analysts believe might tip its economy into a recession – while a White House trade adviser and senior Republican U.S. lawmaker predicted that Washington might not introduce the proposed tariffs.

“Mexico can stop it. They have to stop it, otherwise, we just won’t be able to do business. It’s a very simple thing. And I think they will stop it. I think they want to do something. I think they want to make a deal, and they sent their top people to try and do it,” Trump said at the start of a visit to Ireland.

Frustrated by the lack of progress on a signature issue from his 2016 election campaign, Trump unexpectedly told Mexico last week to take a harder line on curbing illegal immigration or face 5% tariffs on all its exports to the United States starting on Monday, rising to as much as 25% later in the year.

Mexican officials will seek to persuade the White House in talks hosted by U.S. Vice President Mike Pence on Wednesday that their government has done enough to stem immigration and avoid tariffs. Mexican President Andres Manuel Lopez Obrador said he was optimistic the talks can end in an agreement.

Trump said he would go ahead with the tariffs if Mexico does not do more to control migration.

Lopez Obrador has received an official list of U.S. products that could be subject to retaliatory tariffs if the duties threatened by Trump take effect, officials said in Mexico City.

Trump has faced resistance within his own Republican Party over the threatened tariffs, with many lawmakers concerned about the potential impact on cross-border trade and on U.S. businesses and consumers.

White House trade adviser Peter Navarro told CNN Trump’s threatened tariffs might not be needed.

“We believe that these tariffs may not have to go into effect precisely because we have the Mexicans’ attention” on stemming illegal immigration, Navarro said.

If the tariffs go ahead, the United States would be in a serious dispute with two of its three top trading partners. U.S. relations with China have worsened in the past month as Washington and Beijing have imposed additional tariffs on each others’ imports.

DEAL TALK

Mexican officials will offer a “long list of things” in Wednesday’s talks to avoid the duties, said Chuck Grassley, Republican chairman of the U.S. Senate Finance Committee. Grassley said a possible deal could be announced on Thursday night.

Grassley represents the farming state of Iowa, which exports pork and other agriculture products to Mexico and might be hit by Mexican retaliation in a prolonged trade dispute.

Some Republicans have told the White House not to count on the same level of support within the party that Trump received earlier this year when the president declared a national emergency to divert funds to build barriers at the border. Democrats opposed that move.

The proposed tariffs also have been criticized by the U.S. Chamber of Commerce and industry groups due to concerns about increased costs for U.S. businesses and consumers of imported Mexican goods from cars and auto parts to beer and fruit.

The number of people apprehended on the U.S.-Mexico border is at the highest monthly level in more than a decade but is still lower than at other peak periods of illegal immigration since the 1970s. U.S. authorities have said they are overwhelmed not so much by the number of migrants but by a shift in the type of person turning up at the border in recent years. Increasing numbers of Central American families and unaccompanied minors seeking asylum after fleeing criminal violence in their home countries have been turning themselves in to U.S. border agents, who have long been geared up to catch mainly single, adult Mexicans trying to cross clandestinely.

Mexican Foreign Secretary Marcelo Ebrard will attend the talks on tariffs and immigration scheduled in Washington on Wednesday afternoon. He is expected to try to show the White House that authorities are taking steps to stem the flow of migrants, with Mexico detaining double the number each day than it was a year ago.

Leftist Lopez Obrador has said he wants to persuade Washington to help tackle the causes of migration by investing in Central America to create jobs and speed up economic development.

Tariffs could slow another type of migration: the more than 1 million cows exported by Mexico across the border each year that become part of the U.S. beef supply. Tariffs on cattle crossing the border could raise costs for U.S. meat producers and processors, ranchers and economists said, particularly in border states such as New Mexico and Texas.

Pence is looking for a comprehensive suite of proposals from the visiting officials about stopping the flow of migrants from Central America, a White House official said.

“Trade and all other aspects of our relationship are critically important, but national security comes first and the White House is dead serious about moving forward with tariffs if nothing can be done to stem the flow of migrants,” the official said, speaking on condition of anonymity.

The Mexican economy will likely slip into recession this year if Trump follows through on his tariff threat, a Reuters poll of market analysts showed.

An industry source who has met with the Mexican delegation said that ideas being floated to solve the dispute are more border controls and joint security exercises on Mexico’s southern border with Guatemala, which Central American migrants pass through on their way to the United States.

(Reporting by Doina Chiacu, Alexandra Alper, Roberta Rampton, Richard Cowan and Susan Cornwell in Washington, Steve Holland in Ireland, Dave Graham,; Noe Torres and Sharay Angulo in Mexico City, and Gabriel Burin in Buenos Aires; Writing by Alistair Bell; Editing by Will Dunham)

Trump says U.S. likely to go ahead with tariffs on Mexico over immigration

U.S. President Donald Trump meets with Britain's Prime Minister Theresa May (not pictured) in Downing Street, as part of Trump's state visit in London, Britain, June 4, 2019. REUTERS/Henry Nicholls/Pool

By Steve Holland and Dave Graham

LONDON/MEXICO CITY (Reuters) – President Donald Trump on Tuesday said he would probably order new tariffs on all Mexican goods imported to the United States next week despite a diplomatic push to avoid the levies, citing high flows of migrants entering the United States from Mexico.

Trump said last week Mexican goods would pay new tariffs beginning June 10 if Mexico did not halt a surge in the U.S-bound immigrants, mostly from Central America.

Mexico was preparing a proposal on immigration to present to U.S. officials at a meeting in Washington on Wednesday but Trump said the talks might not be enough.

“We’re going to see if we can do something, but I think it’s more likely that the tariffs go on,” Trump said at a news conference in London, describing large flows of migrants into America as an “invasion.”

“Mexico should step up and stop this onslaught, this invasion into our country,” Trump said, also calling on the U.S. Congress to pass immigration laws to address the situation and blaming Democrats for stalling any such effort.

Asked to comment on Trump’s remarks, Mexican President Andres Manuel Lopez Obrador told his regular morning news conference he was optimistic that a deal could be reached.

“The most important thing now is to reach an agreement,” Lopez Obrador said, indicating that he would continue to negotiate even if Trump did go ahead with the tariffs.

Before Trump spoke, Lopez Obrador told the two-hour news conference he expected Mexico to reach a deal with the United States over immigration ahead of the June 10 deadline.

“There are signs that it matters to the U.S. officials that there’s a deal,” he told his regular morning news conference.

The inflow of migrants, many asylum seekers escaping criminal violence in Central America, have long sparked Trump’s ire and helped fuel his successful bid for White House amid a campaign promise that he would make Mexico pay for a wall along the southern U.S. border. Efforts to get Mexico or U.S. lawmakers in Congress to fund the barrier have failed.

Trump’s tariff threat last week was aimed at pressuring Mexico, but it also spooked global markets and put a joint trade pact between the two countries and Canada further in doubt.

Despite Trump’s rhetoric, Mexico is now detaining double the number of migrants per day than a year ago, and three times as many as in January, when Lopez Obrador’s new government opted instead to give visas to Central Americans, hoping they would stay in Mexico.

Instead, most of them made their way to the border, contributing to the recent surge. Under pressure from the United States, the Mexican government changed strategy, and in May detentions surged past 20,000.

Lawmakers from Trump’s Republican Party have begun discussing whether they may have to vote to block the tariffs, according to a report by the Washington Post that cited people familiar with talks in Congress.

Trump said that sort of congressional action was unlikely. “I think if they do, it’s foolish.”  

Mexican Foreign Minister Marcelo Ebrard, in Washington for the talks with U.S. officials, said he hoped Wednesday’s meeting could be a starting point for negotiations. Mexican lawmakers and private sector officials will also be visiting Washington this week to press Mexico’s case, he added.

Mexican officials on Monday vowed to reject a U.S. idea to take in all Central American asylum seekers if it was raised at talks this week with the Trump administration.

“We’re going to find common ground, I think,” Ebrard said at a news conference.

(Reporting by Steve Holland In London and Dave Graham in Mexico City; Additional reporting by Jason Lange and Makini Brice in Washington and by Stefanie Eschenbacher in Mexico City; Writing by Jason Lange in Washington; Editing by Nick Zieminski and Alistair Bell)

As meetings begin and U.S. tariffs loom, Mexico hopes for migration deal

Vehicles and people cross the border bridge into the U.S., as seen from Laredo, Texas June 2, 2019. REUTERS/Carlos Jasso

By Alexandra Alper

WASHINGTON (Reuters) – Mexico can reach an agreement with the United States to resolve a dispute over migration that prompted U.S. President Donald Trump to threaten punitive tariffs, Mexican officials said on Monday as high-level talks were set to begin in Washington.

Trump has proposed the tariffs on Mexican imports to pressure Mexico into action against migrants passing through on the way to the United States, as well as drug cartels.

Mexican President Andres Manuel Lopez Obrador, speaking at his regular morning news conference in Mexico City, also reiterated that he believed a deal could be reached to avert the tariffs.

The Mexican officials, speaking to reporters in Washington, warned that Trump’s tariffs could backfire.

Mexican Foreign Minister Marcelo Ebrard said such tariffs would be devastating and would not stop waves of Central American migrants from crossing the southern U.S. border.

“Tariffs, along with the decision to cancel aid programs to the northern Central American countries, could have a counterproductive effect and would not reduce migration flows,” Mexico’s ambassador to the United States, Martha Barcena, also said at the news conference.

The tariffs also “could cause financial and economic instability,” reducing Mexican authorities’ capacity to address migration flows and “offer alternatives” to migrants fleeing Guatemala, El Salvador and Honduras, she said.

The discussions in Washington will include a meeting of Mexican Agriculture Minister Victor Villalobos and U.S. Agriculture Secretary Sonny Perdue on Monday, Mexican officials said.

U.S. Trade Representative Robert Lighthizer and acting U.S. Homeland Security Secretary Kevin McAleenan also are expected to participate in talks, Mexican officials said.

Mexican Economy Secretary Graciela Marquez and U.S. Commerce Secretary Wilbur Ross will meet this week, as will Ebrard and U.S. Secretary of State Mike Pompeo.

Trump’s latest threat of tariffs further roiled global markets, which are already under pressure amid a trade war between the United States and China.

U.S. stock index futures fell on Monday as the multi-front trade war made investors increasingly risk averse and fueled worries of a recession.

Mexico has cited the economic risk of U.S. tariffs on its goods as it seeks to soothe relations with Washington. A separate trade deal involving Mexico, the United States and Canada also is pending.

Ebrard told reporters Lopez Obrador had not yet decided if he would attend the Group of 20 summit for the world’s leading economies in Japan but would do so this week.

(Reporting by Alexandra Alper and Makini Brice; Additional reporting by Dave Graham in Mexico City; Writing by Susan Heavey; Editing by Chizu Nomiyama and Bill Trott)

Wall St. drops on surprise Mexico tariff threat

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S. May 31, 2019. REUTERS/Lucas Jackson

By Chuck Mikolajczak

NEW YORK (Reuters) – U.S. stocks dropped on Friday, putting the S&P 500 on track for its first monthly drop of the year after President Donald Trump’s surprise threat of tariffs on Mexico fueled fears increasing trade wars could lead to a recession.

Washington will impose a 5% tariff from June 10, which would then rise steadily to 25% until illegal immigration across the southern border was stopped, Trump tweeted late on Thursday.

Mexican President Andres Manuel Lopez Obrador responded by urging his U.S. counterpart to back down.

“Mexico would probably like to work something out but I don’t think they even know what to work out,” said Tim Ghriskey, Chief Investment Strategist at Inverness Counsel in New York.

“It’s impossible to handicap Trump because something can come out of left field like this and something can go away just as quickly.”

The Dow Jones Industrial Average fell 315.97 points, or 1.26%, to 24,853.91, the S&P 500 lost 33.82 points, or 1.21%, to 2,755.04 and the Nasdaq Composite dropped 97.59 points, or 1.29%, to 7,470.12.

Wall Street’s main indexes are down more than 6% in May, as investors have become increasingly worried about deteriorating trade talks between the U.S. and China trade war and have sought safety in government bonds. Technology and energy have been among the hardest hit sectors since May 3 as Trump ramped up tariff threats with Beijing.

U.S. Treasury yields fell to new multi-month lows. Benchmark 10-year yields dropped as low as 2.145 percent, the lowest since September 2017.

The yield curve, as measured in the gap between three-month and 10-year bond yields, remained deeply inverted. An inversion in the yield curve is seen by some as an indicator that a recession is likely in one to two years.

Of the 11 major S&P sectors, only defensive plays utilities and real estate were the two on the plus side while eight were showing drops of more than 1%.

U.S. carmakers and manufacturers were among the worst hit. General Motors Co dropped 4.16% and Ford Motor Co 2.67%, pushing the consumer discretionary sector 1.43% lower.

Adding to the downbeat mood was Beijing’s warning on Friday that it would unveil an unprecedented hit-list of “unreliable” foreign firms, as a slate of retaliatory tariffs on imported U.S. goods was set to kick in at midnight. Tariff-sensitive industrials declined 1.36%.

Data showed U.S. consumer prices increased by the most in 15 months in April, but a cooling in spending pointed to a slowdown in economic growth that could keep inflation pressures moderate.

The report from the Commerce Department supported the Federal Reserve’s contention that recent low inflation readings were transitory.

Among other stocks, Gap Inc tumbled 10.75%, the most among S&P 500 companies, after the apparel retailer cut its 2019 profit forecast.

Constellation Brands, which has substantial brewery operations in Mexico, slid 6.50%.

Declining issues outnumbered advancing ones on the NYSE by a 2.52-to-1 ratio; on Nasdaq, a 3.20-to-1 ratio favored decliners.

The S&P 500 posted 4 new 52-week highs and 52 new lows; the Nasdaq Composite recorded 12 new highs and 210 new lows.

(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)