Mexico's Agriculture Minister Victor Villalobos said the proposed duties would cause total economic damage to the agriculture sector of $117 million per month in both countries, according to Reuters. Villalobos did not specify, however, at what level of tariffs this damage would occur, Reuters reported.
Moreover, the Mexican ministries of foreign affairs, economy and agriculture warned in a joint statement published on Monday that Washington’s extra tariffs on Mexican goods would only increase the inflow of migrants to the United States.
"Without the big efforts Mexico has made regarding migration, the United States would receive 500,000 more migrants in 2019 alone. If, regrettably, tariffs were in fact imposed, migration would increase even more and both economies would become less competitive abroad and less prosperous at home", the statement said.
The statement also noted that Mexico was committed to a dialogue to "avoid a costly and unnecessary confrontation, while at the same time analyzing potential retaliatory measures to the tariffs".
Last week, Trump announced that a 5 per cent import tax would be imposed on all Mexican goods starting 10 June until Mexico stops illegal migrants coming through its territory. The duty will increase by 5 per cent every month until it reaches 25 per cent.
White House Adviser Kellyanne Conway has said that Trump's plan to impose new tariffs on Mexico will not jeopardize the US-Mexico-Canada-Agreement (USMCA).