It’s nice to be able to say something positive emanating from the Donald Trump administration.
The president has announced a suspension of scheduled tariffs on all goods coming from Mexico, which was supposed to take effect on Monday.
Trump said he would impose a 5 percent tariff on those imported products, which in reality is a tax on American consumers, unless Mexico took action to stem illegal migration from Mexico to the United States.
Well, Mexico and the United States have reached an agreement, the details of which will be revealed shortly.
No tariff, said the president. That is good news! I am glad to share it.
According to PBS: A tax on all Mexican goods , which would increase every month up to 25% under Trump’s plan, would have had enormous economic implications for both countries. Americans bought $378 billion worth of Mexican imports last year, led by cars and auto parts. Many members of Trump’s Republican Party and business allies have urged him to reconsider — or at least postpone actually implementing the tariffs as talks continue — citing the potential harm to American consumers and manufacturers.
The impact on the tariff would have a profoundly detrimental effect on Texas, which conducts an enormous cross-border trade with Mexico. Texas farmers were upset with the proposed tariffs. So were the state’s two Republican U.S. senators, John Cornyn and Ted Cruz.
The Trump administration sought to pressure Mexico to do more to stem the flow of migrants coming through that country into our country. I don’t know what Mexico has agreed to do. I hope it passes muster. I also hope it works.
Tariffs on Mexican goods inflicts far more harm within our borders than it does in Mexico.