Experts warn Mexican tariffs will hurt housing market

President Donald Trump

In an interview with CNN prior to the talks, White House trade adviser Peter Navarro said the threatened tariffs against Mexican goods "may not have to go into effect" if the country can take necessary measures to halt undocumented migrants crossing the southern USA border.

Pence said that, among other issues, negotiators in Washington have been discussing a potential agreement to make it hard for those who enter Mexico from other countries to claim asylum in the U.S.

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Short said the administration is "encouraged" by the progress of the negotiations but made clear that there is still "a long way to go".

Mr. López Obrador told reporters "all options" are under review in the event Mr. Trump goes through with his threat. "But something pretty dramatic could happen".

"We are still moving forward with tariffs at this time", said spokeswoman Sarah Sanders. "I'm optimistic we can achieve that".

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Significant differences remain about how quickly and how much Mexico can reduce unauthorized migration through tougher enforcement measures, the USA official said.

The tariffs would begin next Monday and would gradually rise to 25 per cent by October if there was no deal, Mr Trump said.

US Vice-President Mike Pence led the talks in Washington, which were also attended by Mexican Foreign Secretary Marcelo Ebrard.

Mexico City was deploying 6,000 National Guard troops to its southern border with Guatemala, blocked hundreds of migrants in a new caravan and froze the bank accounts of suspected human traffickers in hopes of appeasing Washington's demands.

Trump issued the threat of tariffs last week amid frustration over the huge numbers of migrants traveling northward across Mexico to seek entry in the United States on asylum claims. The U.S. -Mexico-Canada Agreement has been signed by all three countries but must be approved by their legislatures.

Heading into the meeting, which Mexico requested, White House officials had downplayed expectations, saying the US delegation was willing to listen to Mexico's ideas for meeting Trump's demands, but did not expect a deal to emerge Wednesday.

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"We're having a great talk with Mexico". Those people worry about the negative economic consequences for Americans and believe the tariffs - which would likely spark retaliatory taxes on USA exports - would also hurt the administration politically.

Trump imposed the tariffs on Mexico in order to persuade it to do more to prevent illegal immigrants from entering the country through its borders.

"The vice president is eager to hear what tangible measures the Mexican government is prepared to take to immediately address this growing crisis", the official added.

In the trade dispute with China is to decide the Trump only after his conversation with the Chinese President Xi Jinping at the end of the month on an expansion of the punitive tariffs. "Commandeering U.S. trade policy to influence border security is an abuse of power".

Data from the U.S. government this week showed apprehensions at the border in May were triple the level seen during that period previous year.

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