Trump Targets Mexico with Tariffs on Heels of Huge Border Breach
- Author: Zachary Reyes Jun 01, 2019,
Jun 01, 2019, 19:38
The United States-Mexico-Canada Agreement was one of the Trump administration's most touted achievements, but is now once again in jeopardy.
The trade deal "was a triumph for all three countries, and now of course, that all comes into doubt", Guajardo added.
San Diego business leaders reacted with alarm to President Trump's plan to slap tariffs on goods imported from Mexico. It is not immediately clear what impact the tariff threat will have on the draft agreement.
Lopez Obrador's big idea to stop migration is a 10-year economic development plan for Central America and Mexico that he says will wipe out the root causes of the exodus. "It asks them to jump through hoops with no reward".
Shares of automaker stocks fell Friday morning following the news. Sources told the news organization his agitation was also due to input from adviser Stephen Miller and comments made by Levin about immigration.
The economic impact for Mexico was swift, with the peso dropping more than 3 per cent against the United States dollar Friday morning.
As part of the USA effort to stem the flow, Kevin K. McAleenan, the acting secretary of the Department of Homeland Security (DHS) and Guatemala government agreed to boost law enforcement cooperation, the DHS said on Friday.
"Our state sends nearly $1.5 billion in exports to Mexico each year; a trade war would devastate businesses all across New Mexico, in rural and urban communities alike", she said. Products that are traded between the two countries tend to cross each other's borders multiple times.
Trump has pledged to end the wave of tens of thousands of asylum seekers, including many Central American families fleeing poverty and violence, who make the arduous journey north to seek refuge in the United States.
But then Trump lashed out with tariffs over the migration issue - and doubled down Friday by saying Mexico also needed to stop drug trafficking into the USA if it wanted the tariffs lifted. "The odds that Trump will target Japan next have clearly risen in their mind after today's news". A 5% duty on the $346.5 billion of goods imported from Mexico translates into $17 billion in tariffs.
"For GM, we roughly estimate that a 5% tariff could be a several-hundred-million dollar annual earnings hit", the analyst wrote.
The timing of Trump's threatened new tariffs was puzzling, suggesting a chaotic internal policymaking process.
Officials said it was the largest single group since October.
The United States has a "safe third country" deal with Canada. "The Tariff is about stopping drugs as well as illegals!" he tweeted. And there they will stay, according to the White House, "until Mexico substantially stops the illegal inflow of aliens coming through its territory".
But the move provoked condemnation even from some of Trump's fellow Republicans. The trade deal still needs to be ratified by both the congresses of both countries. Rob Portman of OH, who served as the top USA trade negotiator under President George W. Bush, tweeted.
The Constitution gives Congress power over the nation's trade policies.
What would tariffs on Mexico mean?
"This is not a legal issue", Obrador said on Friday. Rufus Yerxa, president of the National Foreign Trade Council, which represents America's...
Now, Trump already risked disrupting that relationship by renegotiating NAFTA.
Trump has led the United States into the biggest trade war since the 1930s.
Already, Trump's steel and aluminum tariffs have added billions of dollars to the cost of assembling US vehicles, and tariffs on Chinese-made parts have also hiked costs. (And that USA policies have actually inflamed and made worse.) And if Trump's new tariffs do succeed in inflicting significant economic pain on Mexican businesses, who will bear the brunt of that?
First off, as Trump's critics keep pointing out, when you impose tariffs on another country, it's not actually that country or its businesses that pay the tariffs. "The president has been saying for months, if not years, that we have to do something to secure our border".
Autos are at the heart of US trade talks with Japan and the European Union. "And as they escalate, significant", he said. It's the largest supplier of men's and boy's jeans, accounting for 35% of imports, according to the American Apparel & Footwear Association. He said Friday that to avoid tariffs "companies will leave Mexico, which has taken 30% of our Auto Industry, and come back home to the U.S.".
In Europe, some North Atlantic Treaty Organisation members moved to accelerate previous pledges to increase their own national defense budgets amid Trump's complaints that they were freeloading off the United States' security umbrella - and his vague threats, first issued during his 2016 campaign, that he would pull out the United States of the alliance. "No country should delude itself thinking they can appease him to avoid them".