By on June 10, 2019

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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62 Comments on “It’s Monday, and Mexican Tariffs Are Back On the Table...”


  • avatar
    Fred

    So what exactly is the larger issue?

    • 0 avatar
      highdesertcat

      That’s what I was thinking too.

      The way I see it, if Old Mexico doesn’t stop the flow of illegal aliens into the US, the tariffs go into effect after 90 days. Seems fair to me.

      Ever since the end of WWII, the rest of the world has been using the US as its doormat. Now America has a President who stands up for America instead of apologize for America like the last one did.

      • 0 avatar
        Whatnext

        “…since the end of WWII, the rest of the world has been using the US as its doormat…”

        What a load of rubbish.

        • 0 avatar
          highdesertcat

          Says you.

          And a huge number of Americans who paid their taxes do not agree with you. Hence, Trump. He said what he was going to do, and he is doing it.

          Fortunately America now has a President who fights back.

          Yeah, and we better enjoy the great times while we can because even these good things will eventually come to an end.

          Now is the time to get your financial act together while there is money to be made during the Trump Presidency.

          And a lot of working people are. People are moving from high-tax states to low or no-tax states, like me — I now list my domicile as West El Paso, TX.

          • 0 avatar
            caljn

            But a “yuger” number of Americans disagree with you.
            And that low tax/no income tax state you’re moving to…have a look at their real estate taxes, sales taxes, registration fee’s etc. Your real savings, if any, won’t be much.

            You must be retired, as retiree’s typically move to so-called low tax states, where real estate is cheaper but education and career opportunities are far fewer. You get what you pay for.

          • 0 avatar
            highdesertcat

            caljn, we just this year divested all of our real estate holdings in NM by signing a Quit Claim Deed removing our names effectively transferring ownership to our kids and grandkids, although the rentals are still managed by the family business HQ in WY.

            Mine is too long a story to recount in this comment, but if you go through the ttac history archives you’ll get a better grip on our involvement in the real estate business, my work of 1985-2016 in both real estate and the new-car bid’ness, and the developments since.

            But judging from the sheer number of people moving from CA, NY and NJ to the humble clear blue skies of The Land of Enchantment, and the number of homes and ranches we sold them, I’d say those people have the right idea.

            I am retired, but then again, I retired in 1985 from the military and chose to be self-employed after that.

            And you are right. You get what you pay for. And that’s why it is important to be prudent in one’s choices and life decisions.

            Worked for me, but may not work for others.

          • 0 avatar
            caljn

            You didn’t address the so-called tax advantages. Real estate costs are the advantage you should be talking about.

            And I am sure those ex CA, NY, NJ residents are moving to NM to retire and not to start or advance their careers, which is fine. Attrition, it works.

          • 0 avatar
            Superdessucke

            @ cajun – You have to be careful about that mentality. Attrition might be good in certain respects but it’s usually not good when it’s taxpayers who are leaving. Retirees, obviously depending on financial situation, spend money, pay taxes, and vote (balancing out the idealists). The real attrition you want to see is the low income high crime demographics.

          • 0 avatar
            Fordson

            Trump is running a hybrid protection racket/just plain unbalanced knee-jerk reaction…series of actions (can’t be called an actual strategy), and you lap it up.

            This guy doesn’t know what he’s doing or trying to do from one minute to the next, but you see the brilliant master plan plain as day.

            Well, that was all yesterday…what do the tea leaves tell you is going to happen with the Sun King today?

            You crack me up.

          • 0 avatar
            ToddAtlasF1

            A cursory examination of the facts shows that Trump is doing nothing you’ve suggested Fordson, but the open-border propagandists at the NYT are trying to create the narrative to continue fooling the insipidly dense. Result!

          • 0 avatar
            jkross22

            Trump won because Hillary lost. If you don’t know what that means, revisit the sentiment surrounding her campaign and you’ll be reintroduced to what happened.

      • 0 avatar
        Fred

        Actually the President said if the new NAFTA isn’t signed he would re-instate the tariffs. He gave no timeline.

        • 0 avatar
          highdesertcat

          I think we’re talking about two different things here, the first being the USMCA, and the second being tariffs applied in 90 days if the Mexicans do not live up to the agreement they reached with SOS Mike Pompeo on stopping the flow of illegal aliens into the US.

          It was on TV, Newsy I believe.

      • 0 avatar
        bd2

        You must mean stand up for Putin/Russia (as well as the Crown Prince of SA).

        2 really “superb” individuals.

    • 0 avatar
      Lorenzo

      Trump is now pushing ratification of the USMCA trade agreement. Canada has just introduced to Parliament, Mexico just introduced it to their legislature, and Trump won’t send it to the Senate until both Canada and Mexico have approved it.

      The 6-month withdrawal from NAFTA is nearly complete and there would be no trade agreements if the USMCA isn’t approved. Trump is just signaling that normal tariffs the agreement suspends will be imposed.

  • avatar
    The_Guru

    This is a garbage blog piece and you know it. Clickbait AF and sources from the NYT? What is this, a full fledged Kinja garbage site now?

    • 0 avatar
      highdesertcat

      Yup, this mighty web site has fallen.

    • 0 avatar
      R Henry

      No. TTAC should not be mentioned in the same sentence with the ‘nik. Here we enjoy real enthusiast writers who actually understand much of the automotive realm.

      This piece is not complete, but it doesn’t espouse a political bias either—unlike the bias so pervasive elsewhere.

      I am SO pleased I found TTAC!

    • 0 avatar
      golden2husky

      …Sources from the NYT…

      Clickbait? The Times is one of the most award-winning publications out there. Yes, their editorial page is certainly left of center. But that is the opinion section. Which is where it belongs. In the main body of the paper the stories are well written and factually correct. And they have no problem pointing out Democrats that have their hand in the cookie jar. State sponsored Trump TV this is not.

      • 0 avatar
        ToddAtlasF1

        They’re owned by Carlos Slim, who was the richest man in the world for years based on the money he makes funneling US wealth back to Mexico. They’re pure propaganda, and their forced retractions of front page stories are frequent and buried in the fine print on page 34. Anyone who still believes anything they write on Mexico is incapable of acting in their own interest. Journalism awards are right up there with peer-reviewed academic articles in the humanities at this point.

        • 0 avatar
          JimZ

          ” Journalism awards are right up there with peer-reviewed academic articles in the humanities at this point.”

          they mean more than the opinion of some random nobody on the internet who thinks he knows everything about everything.

      • 0 avatar
        JimZ

        but hannity sez they’re leftist fake news so all of the Fox drones have to parrot it relentlessly.

        then they accuse other people of not thinking for themselves.

      • 0 avatar
        jkross22

        golden, There’s no doubt that the NYT is a well written paper, but we have to be honest. The paper’s political bias shows up everywhere, even when a D/R narrative isn’t present.

        A recent example of this is the NYT’s biased reporting on the YouTube/free speech dust up and the paper’s selective reporting on how it labels certain YouTubers and it’s stance on free speech.

        I still catch the occasional NYT article because it is a well written paper, but you can’t ignore the blatant bias that’s now become the norm.

        • 0 avatar
          JimZ

          “free speech” doesn’t apply to YouTube. YouTube is a private corporation, they’re not bound by the First Amendment.

          something all of you Constitutional Scholars should be well aware of.

        • 0 avatar
          bd2

          The biggest bias the NYTimes engaged in was when they were parroting the Bush admin in the run up to the (2nd) invasion of Iraq.

          Otoh, other outlets (like Knight-Ridder) did excellent reporting which rebutted or cast serious doubts on the claims made by Cheney, Rumsfeld, etc. – which bore out to be accurate.

      • 0 avatar
        Johnny Ro

        Carlos Slim owns a pile of Class B shares. He does not “own” the NYtimes. Or have voting control over it. To own 100% of Class A gives you power over 1/3 of the Board. NYT closed at USD $ 32.78 today, up 1.74% for the day.

        • 0 avatar
          ToddAtlasF1

          Wow. You dissemble well enough for Carlos to give you a job. Sorry if I’m not willing to pretend to be as idiotic as you are to close a deal.

          • 0 avatar
            JimZ

            wow. couple days ago you rip me for an ad hominem attack against you, now you do the same thing to him.

            physician, heal thyself. you utter worthless piece of s**t.

  • avatar
    brn

    So if the deal doesn’t go through, we’ll return to where we were before the deal?

    Nice, non-article.

    • 0 avatar
      mason

      Are you really expecting TTAC to write an ending to this piece?

    • 0 avatar
      Lorenzo

      No, there’s no returning to NAFTA conditions. There’s a 6-month process to withdraw from it, and the US has nearly completed the process. That was the club Trump used to get Mexico and Canada to negotiate a new agreement.

      There are a number of basic tariffs imposed on imports from countries that don’t have trade agreements with the US, and those will be imposed on Mexico and Canada if the USMCA isn’t ratified by all three countries in time. Trump is using that time limit as a club to get the agreement ratified.

      But no, it’s not a return to previous agreements, both Canada and Mexico will be subject to tariffs they haven’t seen since before NAFTA. That’s news, and it affects a wide range of imports from both countries that affect the auto industry.

  • avatar

    And then what? Stock market is pushing into record highs. Economy is booming, unemployment is record low, housing prices always go up, everybody is happy. It looks like no one cares about tariffs, national debt or even healthcare reform. We live in a surreal world.

    • 0 avatar
      highdesertcat

      “We live in a surreal world.”

      Yes, we do. At least in America today.

      Never, ever, in all my years of filing taxes, have we ever received a tax refund of more than $9600 from the IRS. But we did for 2018, this past April.

      And this was with our standard deduction of “0” on our W-4.

      Similar stories elsewhere. Know several people who took extended trips to resorts on their funny money.

      • 0 avatar
        JimZ

        typical Boomer. F you I got mine, so the hell with future generations.

      • 0 avatar
        jkross22

        highdesert, As long as you pretend there’s no opioid epidemic, no systemic problems with costs in healthcare, if you believe the unemployment numbers are accurate and if you believe we have no problems with homelessness, and 50% of 1 parent families are on government assistance isn’t a big deal.

        And we spend $64 billion on SNAP/food stamps. Because that’s how many people don’t have enough money to buy food on their own.

        But yeah, the stock market’s doing great so we’ve got that.

  • avatar
    DenverMike

    “…Fees of that magnitude would undoubtedly…”

    Drama aside, if GM could charge 25% more with zero added benefit to consumers, they would undoubtedly do it right now. Or last year.

    Except GM could avoid all tariffs with Complete Knockdown kits.

    What ever the expense, GM has to eat it. Big recalls/lawsuits aren’t free, so why not charge consumers for those?

    Where’s my $180,000 Jetta?

  • avatar
    Crosley

    I’m honestly asking, are there people here that think Mexico should not be pressured in anyway to help stem this? If anything, there’s plenty of evidence they actually encourage this illegal activity.

    Nearly a million people just walking over our border illegally is still mind blowing, it’s like a new “state” comes over here every year.

    If they get dinged with a tax over it, so be it.

    • 0 avatar
      Lorenzo

      That was settled by a signed agreement. This tariff threat is what will normally be imposed on countries with no trade agreement with the US. Trump is just pushing for Canada and Mexico to ratify the USMCA agreement before the US withdrawal from NAFTA is complete. Whatever you think of Trump the man, as a businessman he knows how to negotiate.

      • 0 avatar
        jkross22

        Trump filed bk running a casino. Ponder that when you speak of any notion that he’s a good businessman or negotiator.

        • 0 avatar
          JimZ

          these brainless morons will just yell “Fake News” as if that means it never happened.

          • 0 avatar
            Lorenzo

            Jimz get treatment for your derangement syndrome. When you label people as deranged morons based on your political beliefs, you’re headed down a lonely road.

        • 0 avatar
          Lorenzo

          I don’t have to ponder that a businessman used a legal process to reorganize his business. That’s why Congress passed the legislation. You apparently think bankruptcy is a bad thing, when it’s a reorganization process to recover from unforeseen events, not necessarily due to mismanagement.

    • 0 avatar
      jkross22

      They’re not getting dinged with a tax. We are.

  • avatar
    ToddAtlasF1

    Seeing Carlos Slim’s NYT in rabid spin mode smells like victory. The Pedocrats are going to lose their supply of trafficked children and illegal voters at this rate. Trump might save our country’s soul.

    • 0 avatar
      golden2husky

      Where are these “illegal voters” you speak of? The only recent case that I recall from last year was a – Surprise _ a Republican. If you have a non-infowars source I’d like to see the link. Frankly, the real voter crime is the intense gerrymandering performed by the ‘Pubs who were incredibly successful with that endeavor. Now add the continual voter suppression. Seems that the GOP does better when less people vote. Deceased GOP strategist Tom Hofeller’s hard drive was full of information on how a citizenship-based question on the census would hold down compliance – another win for the GOP. The Constitution is clear: it says count People, not citizens. If you want to argue that they really mean citizens, let’s apply that logic the the Second Amendment. I have to laugh – the GOP likes to say they are the party for patriotic Americans. There is nothing more patriotic than voting and here they are, engineering the system to their benefit. Just like the economic system. Well, a plus for consistency I guess. They just better hope that the 40 plus percent of the country’s population that the economic boom of the last 10 years has passed over doesn’t decide that civil disobedience and destruction is the only remaining way to wake up the country. I might be 87 when that happens but I’ll gladly donate some gas money.

      • 0 avatar
        ToddAtlasF1

        There’s nothing more patriotic than voting? You wrote that. Let it sink in that you thought that was an idea worth expressing.

      • 0 avatar
        jkross22

        g2h, While it’s a matter of opinion, I would say serving in the military is more patriotic than voting. As is public service in any capacity.

        Voting is a responsibility, not an act of patriotism. Pity more of us don’t think of it that way.

  • avatar
    tylanner

    Bad work here folks…no one uses more article tags than this guy….

    He actually put Trump as a tag….the lowest of the low…

  • avatar
    James Charles

    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.

    • 0 avatar
      jkross22

      James, it’s a cult. To be reflexively pro-Trump in 2019 means you’re not thinking. You’re just reacting to what specific people tell you to think.

      • 0 avatar
        JimZ

        and those reflexively pro-Trump people will accuse people who disagree with them of “being told how to think.”

        meanwhile, in 2019, we have *literal* Nazis wearing swastika armbands and waving swastika flags marching in Detroit.

        My grandparents’ generation would have put them down like the diseased animals they are. But now, I’m supposed to pretend the Nazis are the “good guys.”

  • avatar
    Lorenzo

    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.

    • 0 avatar
      The_Guru

      Cant expect anything less from the deranged mental midget Dems, now can we?

      • 0 avatar
        bd2

        Been proven that conservatives tend to be the “mental midgets.”

        Even more truth to it this day (who else would believe the Grifter-in-Chief so blindly; after all, he did say he “loved the poorly educated”).

        Which is why the respective bases for Putin, Erdogan, Duterte, Orban, etc. are all similar to Drumpf’s base.

        As was the case for the former President of Iran, Mahmoud Ahmadinejad (also known for making stupid, outlandish claims).

        • 0 avatar
          The_Guru

          Cute. I’ll take common sense anyday, above the party who openly applauds for infant genocide anyday. But you know, keep pushing that “intelligence” thing.


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