Washington — President Donald Trump says he has suspended plans to impose tariffs on Mexico, tweeting that the country “has agreed to take strong measures” to…
Washington — President Donald Trump says he has suspended plans to impose tariffs on Mexico, tweeting that the country “has agreed to take strong measures” to stem the flow of Central American migrants into the United States.
“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico,” Trump tweeted Friday night, saying the “Tariffs scheduled to be implemented by the U. S. on Monday, against Mexico, are hereby indefinitely suspended.”
He said Mexico has agreed to work to “stem the tide of Migration through Mexico, and to our Southern Border” and said those steps would “greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States.”
He said details would be released soon by the State Department.
The tweet marked a change in tone from earlier Friday, when his spokeswoman Sarah Sanders told reporters in Ireland before Trump took off: “Our position has not changed. The tariffs are going forward as of Monday.” Trump has often said unpredictability helps him negotiate.
A tax on all Mexican goods, which would increase every month up to 25% under Trump’s plan, would have had enormous economic implications for both countries. Americans bought $378 billion worth of Mexican imports last year, led by cars and auto parts. Many members of Trump’s Republican Party and business allies have urged him to reconsider — or at least postpone actually implementing the tariffs as talks continue — citing the potential harm to American consumers and manufactures.
The Center for Automotive Research estimated that a 5% tariff on Mexican goods would have added $250 to the price of U. S.-built cars that are frequently built with parts originating in Mexico. A 25% tariff would have added $1,100 to the price of a U. S-built vehicle that used parts from Mexico.
The group said vehicles imported from Mexico would see even sharper price increases — at least $1,100 at a 5% tariff rate and at least $5,400 if the tariffs were hiked to 25% by October. Overall, the automotive research center estimated that tariffs would have reduced U. S. gross domestic product by $7 billion to $34 billion annually and caused the loss of 82,000 to 390,000 U. S. jobs.
Vehicles and auto parts are by far the biggest export from Mexico to the United States, totaling $93.3 billion last year, according to the U.
