President Donald Trump said late Friday he had struck a deal with Mexico on border security that means the U.S. will not impose a 5% tariff on all Mexican goods Monday (June 10).
The President tweeted the news:
….stem the tide of Migration through Mexico, and to our Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States. Details of the agreement will be released shortly by the State Department. Thank you!
— Donald J. Trump (@realDonaldTrump) June 8, 2019
The Consumer Technology Association has called the threatened tariffs, which could have escalated to 25% by October, “a short-sighted, short-tempered reaction that doesn’t recognize a basic economic fact – tariffs are taxes,” pointing out that that Mexico is the U.S.’s number one consumer tech export market to the tune of $41 billion in 2017.
The White House signaled last week that the border “crisis” required such potentially strong economic sanctions from the U.S., a tactic the President appears to favor. Trump is currently trying to use tariffs to try to get better terms from China on U.S. goods.
The Computer & Communications Industry Association had been no happier with the tariff threat.
“The Administration’s plan to impose tariffs on products from Mexico is counter-productive in light of the USMCA and recent steps taken by all parties to implement the updated agreement,” said CCIA president Ed Black last week. “The blunt tool of tariffs will harm American consumers and industries, and risks the full realization of the benefits of a modern trade agreement that brings the North American market into the 21st century.”
That blunt tool has been put back in the box, for now.