As Mexico Beefs Up Its Border, Tariffs Still Lurk on Monday

Steph Willems
by Steph Willems
as mexico beefs up its border tariffs still lurk on monday

Friday brought a third day of talks aimed at preventing a U.S.-imposed tariff on Mexican goods. Late last month, the White House warned that a 5 percent import levy would hit Mexican goods on June 10th, rising to 10 percent by July and 25 percent by October, if Mexico doesn’t stem the flow of illegal migrants travelling through its country to reach the U.S.

Going into the weekend, the threat still stands. There are, however, signs of progress both from the U.S. and its southern neighbor.

You wouldn’t know it from comments by White House Press Secretary Sarah Sanders, who said Friday, “Our position is still the same and we’re moving forward with the tariffs” on Friday, as reported by Reuters.

Sanders added that meetings between the two sides have gone well, but not well enough to head off Monday’s tariffs. A legal notification of the tariffs is expected today.

Speaking to reporters in Mexico City, Mexican President Andres Manuel Lopez Obrador put on his optimistic face, saying, “There is dialogue and an agreement can be reached. I’m optimistic we can achieve that.”

On Thursday, Mexico deployed police and military forces to its border with Guatemala, hoping to harden its southern flank against the flow of Central American migrants. As reported by the Guardian, Vice President Mike Pence said he was “encouraged” by Thursday’s talks, but added that the final decision would be Trump’s.

Today, Trump took to Twitter to suggest, among other things, that Mexico might avoid the looming tariff by purchasing U.S. agricultural products.

“If we are able to make the deal with Mexico, & there is a good chance that we will, they will begin purchasing Farm & Agricultural products at very high levels, starting immediately,” Trump tweeted. “If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday!”

Any tariff levied on Mexican goods would be a nightmare scenario for domestic and foreign automakers, raising sticker prices on vehicles sold in the world’s second-largest auto market. Automakers are already contending with a slumping Western car market, increasingly stringent emissions regulations, a pricey plunge into electric vehicle development, and faltering Chinese sales. Interesting times.

[Image: General Motors]

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  • Thelaine Thelaine on Jun 08, 2019

    It's just a negotiation.

  • Jeff S Jeff S on Jun 08, 2019

    Manufacturing parts in Mexico is nothing new. My 99 S-10 has door handles, glove box latch, and several other parts Made in Mexico and it likely has Chinese parts as well. Auto makers have been outsourcing many of their parts outside of the US for years.

  • SCE to AUX Toyota the follower, as usual. It will be 5 years before such a vehicle is available.I can't think of anything innovative from them since the Gen 1 Prius. Even their mythical solid state battery remains vaporware.They look like pre-2009 General Motors. They could fall hard.
  • Chris P Bacon I've always liked the looks of the Clubman, especially the original model. But like a few others here, I've had the Countryman as a rental, and for the price point, I couldn't see spending my own money on one. Maybe with a stick it would be a little more fun, but that 3 cylinder engine just couldn't provide the kick I expected.
  • EBFlex Recall number 13 for the 2020 Explorer and the 2020 MKExplorer.
  • CEastwood Every time something like this is mentioned it almost never happens because the auto maker is afraid of it taking sales away from an existing model - the Tacoma in this instance . It's why VW never brought the Scirrocco and Polo stateside fearful of losing Golf sales .
  • Bca65698966 V6 Accord owner here. The VTEC crossover is definitely a thing, especially after I got a performance tune for the car. The loss of VTEC will probably result in a slower vehicle overall for one reason: power under the curve. While the peak horsepower may remain the same, the amount of horsepower and torque up to that peak may be less overall. The beauty of variable cam lift is not only the ability to gain more power at upper rpm’s on the “big cam”, but the ability to gain torque down low on the “small cam”. Low rpm torque gets the vehicle moving and then big horsepower at upper rpm’s gains speed. Having only one cam profile is now introducing a compromise versus the VTEC setup. I guess it’s possible that with direct injection they are able to keep the low rpm torque there (I’ve read that DI helps with low rpm torque) but I’m skeptical it will match a well tuned variable lift setup.
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