MEXICO CITY, June 4 (Xinhua) -- Steep new tariffs imposed by the administration of U.S. President Donald Trump should lead Mexico to rethink its trade policy and economic strategy, experts said here Monday.
Mexico should use this opportunity to make needed policy changes and strengthen its domestic market, the experts from the Economic Research Institute of Mexico's National Autonomous University (UNAM) told a press conference.
"The opportunity is here to make the transition to a true industrial policy," said Andres Blancas Neria.
He recommended that decision-makers promote growth and development by investing in large-scale national projects, not just monitoring spending.
Blancas said Washington's high tariffs on steel and aluminum imports are a response to "the decrease of its global dominance, especially in relation to the Asian market."
In the medium to long term, Trump's protectionist measures could not only shut the United States out of Asian and European markets, but also spark "a tendency to abandon production to become an importing nation," said Blancas.
Macroeconomics expert Jose Manuel Marquez noted the new tariffs offered Mexico a great incentive to diversify its trade ties, while Jose Nabor Cruz warned U.S. protectionism is likely to intensify, especially if Trump is re-elected to a second term.
Mexico's Economy Ministry said earlier in the day it will begin the process of dispute resolution at the World Trade Organization over Washington's new steep tariffs on imported steel and aluminum.
Mexico also reiterated its intention to retaliate with equivalent tariffs on U.S. imports.