WASHINGTON -- President Donald Trump threatened on Thursday to put tariffs on cars coming from Mexico into the United States if Mexico does not continue to help Washington deal with the immigration situation along the southern U.S. border.
Trump told reporters at the White House he would put tariffs on cars or close the border, but he said he may start with the tariffs. He also said he would give Mexico a year to try to stop the flow of drugs before putting tariffs in place.
"A lot of good things are happening with Mexico," Trump told reporters. "Mexico understands that we're going to close the border, or I'm going to tariff the cars."
Trump said he would "probably start off with the tariffs -- that will be a very powerful incentive."
He added on the possibility of closing the border: "We are going to give them a one year warning."
Trump warned last Friday that he would close the U.S. border with Mexico this week unless Mexico took action to help stop the flow of illegal migrants across the frontier. Such an action would likely threaten most North American auto production, experts say.
Trump said on Thursday that media coverage in recent days has prompted Mexico to take action to curb the flow of immigrants to the United States and take other action to ease the pressure on U.S. ports of entry.
Trump plans to visit the border at Calexico, California, on Friday.
Separately, Mexican exporters said this week they were looking into sending their goods to the United States by air freight to avoid a five-mile line of trucks at the border caused by the Trump administration moving federal agents away from customs checks to immigration duties.
Auto parts and medical equipment makers were among the Mexican companies considering the more expensive air cargo to avoid incurring penalties for late delivery to U.S. clients or factory closures, Luis Aguirre, the president of Mexico's manufacturing industry chamber INDEX, said late on Wednesday.
Automakers and their suppliers typically use air freight as a last resort to keeping assembly lines open amid parts shortages.
China progress
The president also said on Thursday that China will be buying a lot of product from the United States as the world's two largest economies try to sort out a trade dispute.
China and the United States are in the middle of negotiations to end a months-long trade war that has rattled global markets. After meetings in Beijing last week, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are holding talks with a Chinese delegation in Washington this week.
White House adviser Larry Kudlow also expressed optimism about the progress of talks.
"If it's not a great deal, we're not doing it," Trump told reporters. "But it's going very well. Top officials are here. And we're very well along on the deal. It's a very complex deal. It's a very big deal."
"It'll be a great deal for our farmers. Technology, intellectual property theft -- everything is covered. There's not a thing that's not covered," he said.
Trump was slated to meet with China's top trade negotiator, Liu He, later Thursday afternoon at the White House. The Wall Street Journal and the New York Times reported that he was expected to announce a date for a summit at that time, but a senior administration official told Reuters that was incorrect.
"The White House is not expected to announce a date for a meeting," the official said.
This story will be updated.
