No less than Senate Majority Leader Mitch McConnell has voiced objections to the five percent plus (5% +) importation taxes that Trump is poised to impose on Mexico goods. Come Monday, June 10, 2019, all goods imported from Mexico will be meted with a five percent (5%) tariff.
The new Mexico Tariff is set to increase by an additional five percent (5%) each month, to reach a final rate of 25% by October 2019. The final rate stays until such time that the Trump administration deems that Mexico is satisfactorily meeting the U.S. president’s demands pertaining to the prevention of illegal immigrants from crossing the U.S.- Mexico Border.
However, Senator McConnell said
“There is little support in my conference for tariffs.”…”Most of us are hoping that the negotiations with the Mexican envoys on Wednesday will be fruitful so that the tariffs will not kick off”
After convening in a closed door lunch at Capitol Hill, Republican senators raised concerns over the impending Mexico tariffs. Republicans are pushing against it not only because it goes against the grain of the party’s robust support of free trade. The GOP senators view the potential effects of the tariff. Initially, it will weigh down heavily on American manufacturers, who in turn, will subsequently pass the additional costs to consumers.
Based on a state-by-state analysis prepared by the U.S. Chamber of Commerce, the state of Michigan will be the hardest hit. The region’s automotive industry is largely dependent on its North American supply chain that delivers components and finished goods to and from the border. Other U.S. states with large Mexican imports include Texas, California and Illinois.
Despite their displeasure with the president’s use of the Mexico tariff as tactics in compelling Mexico to solve the border immigration crisis, Republicans are hoping that the outcome of the Mexico negotiations will not require the tariff’s actual execution come June 10, 2019.
Outcome of the Mexico-U.S. Negotiations Over Trump’s Planned Mexico Tariffs
Unfortunately though, the meeting last Wednesday between the Mexican delegation headed by Mexico Foreign Secretary Marcelo Ebrard and the White House representatives led by U.S. Vice President Mike Pence, failed to reach an end to the Mexico tariff issue.
Mexican Foreign Secretary Marcelo Ebrard disclosed to reporters that the negotiations delved mostly on immigration issues and Trump’s conditions. Apparently, the White House is asking the Mexican government to maintain a “safe third country” agreement similar to the the one the U.S. entered with Canada. Moreover, the Trump administration wants Mexico to accept the controversial “Migrant Protection Protocol” that will see undocumented migrants remaining in Mexico during immigration proceedings.
Although Trump tweeted that the results of the negotiations last Wednesday indicated progress, Mexico’s Foreign Secretary Marcelo Ebrard said a “safe-third country” agreement drew a “red line” in the negotiation talks. Mexican officials who were present during the meeting explained that Mexico’s economy will not be able to bear the burden of holding the influx of Central American migrants. Still, the negotiation is set to continue with another round of talks on Thursday.