It's Monday, and Mexican Tariffs Are Back On the Table
After the United States and Mexico signed an agreement to stem the flow of illegal migrants from Central America across their shared border, President Donald Trump’s latest tariff proposal was taken off the table. You could almost hear the sphincters of every global automaker collectively unclench in that moment. Unfortunately, their rectal vacation appears to have been short lived.
“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,” Trump tweeted on Monday. “We do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, tariffs will be reinstated!”
Last month the president threatened a 5 percent tariff on Mexican goods, with duties gradually increasing to 25 percent by October, if the country didn’t agree to curtail illegal immigration across its borders. Fortunately, the issue was settled by Friday and the tariff threat was taken off the table.
However, according to a report from The New York Times published over the weekend, multiple aspects of the deal had been agreed upon months in advance. Among them was a pledge from Mexico to deploy its National Guard throughout the country, with priority given to its porous southern border. The Times claims the Mexican government had already pledged to do just that in March during clandestine meetings between Kirstjen Nielsen, then the secretary of homeland security, and Olga Sanchez, the Mexican secretary of the interior.
It also said that an expansion of a program to allow asylum seekers to remain in Mexico while their legal cases proceed had been finalized in December, with Nielsen announcing the Migrant Protection Protocols during a hearing of the House Judiciary Committee just before Christmas.
Trump called the piece a “hit job” and suggested that it misrepresented the larger issue while also underreporting additional changes Mexico had planned. He reinstated the tariff threat at roughly the same time. Sadly, the full scope of the two countries newly agreed-upon immigration strategy is not yet known.
Mexican Foreign Minister Marcelo Ebrard wrote in a tweet Monday that he plans to brief Mexican President Andres Manuel Lopez Obrador on the details of the agreement today. Meanwhile, the Mexican ambassador to the United States, Marta Barcena Coqui, told American media outlets that her country’s ultimate goal is to help bring down illegal immigration into the U.S. to levels at or before 2018.
With Mexico appearing relatively eager to work with the United States in slowing the flow of illegal immigrants, it seems unlikely that this follow-up tariff threat is anything too serious. However, if the government backs out of the deal, Trump appears willing to push forward with the fees. Assuming that’s how things go, automobile producers with ties to Mexico will likely be confronting sizable hits to their bottom line. Last week, Deutsche Bank estimated that General Motors faced a $6.3 billion hit had the tariff grown to 25 percent. Fees of that magnitude would undoubtedly trickle down to consumers via increased price.
[Image: Chess Ocampo/Shutterstock]
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- Aidian Holder I'm not interested in buying anything from a company that deliberately targets all their production in crappy union-busting states. Ford decided to build their EV manufaturing in Tennessee. The company built it there because of an anti-union legal environment. I won't buy another Ford because of that. I've owned four Fords to date -- three of them pickups. I'm shopping for a new one. It won't be a Ford Lightning. If you care about your fellow workers, you won't buy one either.
- Denis Jeep have other cars?!?
- Darren Mertz In 2000, after reading the glowing reviews from c/d in 1998, I decided that was the car for me (yep, it took me 2 years to make up my mind). I found a 1999 with 24k on the clock at a local Volvo dealership. I think the salesman was more impressed with it than I was. It was everything I had hoped for. Comfortable, stylish, roomy, refined, efficient, flexible, ... I can't think of more superlatives right now but there are likely more. I had that car until just last year at this time. A red light runner t-boned me and my partner who was in the passenger seat. The cops estimate the other driver hit us at about 50 mph - on a city street. My partner wasn't visibly injured (when the seat air bag went off it shoved him out of the way of the intruding car) but his hip was rather tweaked. My car, though, was gone. I cried like a baby when they towed it away. I ruminated for months trying to decide how to replace it. Luckily, we had my 1998 SAAB 9000 as a spare car to use. I decided early on that there would be no new car considered. I loathe touch screens. I'm also not a fan of climate control. Months went by. I decided to keep looking for another B5 Passat. As the author wrote, the B5.5 just looked 'over done'. October this past year I found my Cinderella slipper - an early 2001. Same silver color. Same black leather interior. Same 1.8T engine. Same 5 speed manual transmission. I was happier than a pig in sh!t. But a little sad also. I had replaced my baby. But life goes on. I drive it every day to work which takes me over some rather twisty freeway ramps. I love the light snarel as I charge up some steep hills on my way home. So, I'm a dyed-in-the-wool Passat guy.
- Paul Mezhir As awful as the styling was on these cars, they were beautifully assembled and extremely well finished for the day. The doors closed solidly, the ride was extremely quiet and the absence of squeaks and rattles was commendable. As for styling? Everything's beautiful in it's own way.....except for the VI coupe....it's proportions were just odd: the passenger compartment and wheelbase seemed to be way too short, especially compared to the VI sedan. Even the short-lived Town Coupe had much better proportions. None of the fox-body Lincolns could compare to the beautiful proportions of the Mark V.....it was the epitome of long, low, sleek and elegant. The proportions were just about perfect from every angle.
- ToolGuy Silhouetting yourself on a ridge like that is an excellent way to get yourself shot ( Skylining)."Don't you know there's a special military operation on?"
I've closely followed these Trump generated emergencies and poor judgements for a while now and the comments both for and against. There is one thing common in the TTAC comments missing, how the USA is viewed externally by both sides of the fence and the effects and the accelerated pace of erosion of US dominance. Here is a list of REAL and future challenges confronting US power, influence and wealth, even the US falling further behind the 8 ball with a technological advantage, which slips daily; 1. Diminishing US power: Trump and his followers whine about how little investment is made by Allies and friends in their militaries. So, if the rest of the World ups military spending by 1%, how much does the US now need to invest to maintain its dominance? With Trump's blatant abuse of Allies how prepared are they to defend US interests especially with the poor negotiating skills of Trump and his representatives offending and creating angst. Since the US is only 20% of the global economy, my guess the US now needs to up defence spending by a couple of percent. 6% 2. Influence: The US is now less influencal then since before WW2. Trump is ripping up Treaties, Trade Deals and backing down on his own deals. Even this NAFTA issue is a Trump generated joke. How many countries will deal with the US when a deal is cut, then the US dismisses the deal with threats of increasing taxes? Iran, Paris Accord and the area where US influence could of been most significant in boxing in China, the Trans Pacific Trade Deal Trump backed out of. Wealth: The US will experience, a gradual downturn in standard of living as countries don't offer what the US wants. So far the global community has not imposed tariffs on each other. The US has imposed tariffs on all, increasing the costs of all US manufactured goods, the very thing you don't want if you want to export. To top it off the US consumer are paying for these tariffs. Then the countries impose counter tariffs on the exported US goods. How fncking dumb by Trump. Technology: The US is finding tech competition increasing, why? Because tech is becoming more acessable, like mass production tech. Tech can be bought off the shelf and the US leads in chips, aviation and space. With the restrictions placed on China will force the Chinese to rapidly develop its tech industries, not retard its development as Trump thinks. The US is not propping up the World as many think, as whatever the US makes can pretty much be had outside of the US, generally of better quality and cheaper. The issues confronting the US are mainly internal, not caused by others. Your massive inequality, low pay, poor social welfare and expensive costs. Its easier to blame others for your own problems rather than resolve them yourselves. The US is rich with a great standard of living, so, how hard done by are you guys? You Trump supporters sound like a group of insecure teenagers told to leave home and confront the world. Stop whining and do something yourselves to MAGA. Its not the World's job to do this for you. Grow up.
Wow, where did the intolerance come from? I'm aware that economics and international relations (history) aren't taught much anymore, but people should have the sense to understand the basic issues and that there are differences of opinion without insulting those who express them. It's fortunate polite Canadians are in charge, the founder, Robert Farago, would have banned several people in this thread for insulting other commenters and not contributing to the discussion.