WASHINGTON: Talk of a possible 20 percent tax on US imports from Mexico raised eyebrows Friday in Asia, where exports to the US drive growth in many economies.
Reaction to the news was more muted than it might have been, however, since much of the region was closed for lunar new year holidays.
Japanese officials said Friday they hoped to meet soon with US officials. Finance Minister Taro Aso said the Japanese side should “thoroughly explain” how Japanese companies have been contributing to American society, including creating jobs.
“It would be important to exchange opinions to accurately convey the reality and establish a steady relationship,” Aso told reporters.
President Donald Trump’s press secretary Sean Spicer said the 20 percent tax was among several options to finance building a wall along the US southern border, but no decision has been made.
Mexican President Enrique Pena Nieto scrapped a scheduled trip to Washington over the issue. He has flatly rejected Trump’s assertion that Mexico will pay for the wall on its border.
The peso fell 0.6 percent against the US dollar, to 21.35 pesos to the dollar but recovered to about 21.23 late Friday in Asia. The Japanese yen also weakened against the dollar, to ¥115.23 from Thursday’s close of ¥114.46.
China’s official Xinhua News Agency reported that Trump was considering the 20 percent tariff without any editorial comment. However, the report cited unnamed analysts saying Trump would have to withdraw the US from the North American Free Trade Agreement, or NAFTA, to be able to impose such a tax. Trump has said he wants to renegotiate NAFTA.
Though he did not refer directly to Trump, in remarks marking the eve of the lunar new year on Friday, Premier Li Keqiang said, “Above all, we remain convinced that economic openness serves everyone better, at home and abroad.
“The world is a community of shared destiny. It’s far preferable for countries to trade goods and services and bond through investment partnerships than to trade barbs and build barriers. Should differences arise, it behooves us all to discuss them with respect,” he said.
