[CTC] Trump Says Mexico Tariffs Still Possible

[Arthur Stamoulis]

Text of the immigration agreement: https://www.state.gov/u-s-mexico-joint-declaration/


Trump Says Mexico Tariffs Still Possible

Washington Trade Daily
Monday, June 10, 2019

President Trump warned yesterday that tariffs are still on the table if Mexico does not follow through on commitments to help stem the flow of mostly Central American immigrants over the US border.

In a series of tweets, the President said there will be "great cooperation" between the United States and Mexico on illegal immigration. "However, if for some unknown reason there is not, we can always go back to our previous, very profitable, position of Tariffs - But I don't believe that will be necessary," Mr. Trump tweeted.

The President announced late Friday that he was shelving his plan to impose escalating tariffs on all Mexico products beginning today after US and Mexican officials agreed to an action plan to protect the US-Mexico border.

In announcing his decision to suspend the tariffs, Mr. Trump declared in a tweet written in all capital letters that Mexico also had agreement to immediately begin buying "large quantities" of US agricultural products. No details were provided about sales commitments. But Mexican officials suggested there had been no specific new commitments to purchase US agricultural goods.

Mexican Foreign Secretary Marcelo Ebrard tweeted that Mr. Trump's decision not to impose tariffs "will increase economic growth and hence the demand for products between both countries, both manufacturing and agricultural origin."

In an interview yesterday on CBS' Face the Nation, Mexican Ambassador Martha Barcena Coqui suggested that bilateral trade in agricultural products will rise with ratification of the US-MexicoCanada free trade agreement. Mexico already is the top destination for US agricultural products, she said.

Congressional Reaction

President Trump's threatened tariffs were largely opposed by US agriculture and the business community. Congressional lawmakers from both sides of the political aisle also objected to the planned tariffs, with key members in the House and Senate threatening to bring up a resolution of disapproval to block the tariffs.

Following the President's announcement that he would not impose tariffs on Mexico, Democratic leaders chided Mr. Trump for causing unnecessary tensions in the bilateral relationship. They also argued that the immigration action plan agreed to by the US and Mexican governments will not solve the root causes of the recent flood of Central American immigrants.

House Speaker Nancy Pelosi (D-Calif) said that "President Trump undermined America's preeminent leadership role in the world by recklessly threatening to impose tariffs on our close friend and neighbor to the south."

"This is likely to be one of the president's typical, bogus solutions to justify backing off things like the tariffs, which he precipitously proposed, much to the consternation of the business community nationwide and Republicans in the House and Senate," Senate Democratic Leader Chuck Schumer said in a statement.

But key Republicans countered that the onus is now on Democrats to give the President the funding he wants for border security - and to approve the USMCA.

Democrats continue to say they need to see changes to the USMCA - particularly stronger enforcement for labor and environment commitments, before they can support the trade deal. US Trade Representative Robert Lighthizer has been working with Democrats to try to address their concerns.



Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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