Mexico's president has said he's open to negotiations with the US after President Trump threatened to impose tariffs on all Mexican imports over illegal immigration.
Andrés Manuel López Obrador has said he expects good results from talks planned in Washington next week and is not interested in a trade war. He added he believes he can come to a solution because he has already issued plans to stop the flow of illegal immigrants:
"The main thing is to inform about what we're already doing on the migration issue, and if it's necessary to reinforce these measures without violating human rights, we could be prepared to reach that deal,"
Trump's threat to damage Mexico's economy is the biggest foreign policy test of Obrador's presidency so far. Mexican exports to the United States are important for the economy, which shrank in the first quarter. On top of this, the country is facing record gang violence.
Business leaders in Mexico have urged their president to retaliate by putting tariffs on US agricultural goods that support Trump's Republican Party. But so far the veteran leftist has ruled this out:
"We're doing all we can to reach a deal through dialogue,"
"We're not going to get into a trade war, a war of tariffs and of taxes."
Trump tweeted on Friday:
But he has not yet reacted to the Mexican president's comments.