Trump Says Mexico Tariffs Still Possible If Mexican Legislature Doesn't Approve Deal
President Donald Trump may institute tariffs on goods from Mexico after withdrawing them if the Mexican legislature doesn't approve a part of the deal between the two countries, he said in June 10 tweets. "We have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico’s Legislative body!" he said. "We do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, Tariffs will be reinstated!" The two sides reached a deal on June 7 to avoid the tariffs (see 1906070081) with Mexico agreeing to play a bigger role in handling of migrants from Central America who seek asylum in the U.S., the two countries said in a June 7 joint statement.
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Trump's decision not to impose tariffs should certainly be seen as good news for companies moving products in and out of Mexico, but uncertainty continues to reign, customs lawyer Ted Murphy of Baker McKenzie said in a blog post. "The threat of additional duties on imports from Mexico has been averted -- for now," Murphy said. "Everyone should keep in mind that duties that can be imposed by a tweet, and be taken away by a tweet, can always be re-imposed by a tweet. The world we are living in today is different and, while it is difficult, companies need to take this into account and plan accordingly."
Meanwhile, as business groups and lawmakers celebrated the suspension of the tariffs, some objected to the tariff threat. The Business Roundtable expressed "relief upon the President’s decision not to impose tariffs on imports from Mexico and the progress made on migration issues between the two governments," it said in a news release. "We remain deeply concerned about using the threat or imposition of tariffs to press policy changes with our neighbors and allies. We continue to urge the Administration to work with our trading partners constructively and in ways that do not inject uncertainty and cause harm to the U.S. economy."
The U.S. Chamber of Commerce said Congress ought to move toward passing a new NAFTA deal, known as the U.S.-Mexico-Canada Agreement. "With the threat of tariffs now off the table, it is critical that Congress turn its attention to enactment of the USMCA trade agreement," Chamber CEO Tom Donohue said. "USMCA will preserve and strengthen North American trade, boosting economic growth and job creation. The Chamber intends to put all of its resources behind securing the earliest possible passage of USMCA." Sen. Rob Portman, R-Ohio, also said that the trade agreement should now be the focus in Congress. “I hope this new agreement on immigration will pave the way for the House and Senate to move quickly to pass the U.S.-Mexico-Canada Trade Agreement, which is critical to Ohio workers, farmers, and manufacturers,” he said in a news release.