Trump Administration will Hold Off on Mexico Tariffs
The Trump administration won't levy new tariffs on Mexican imports as the President boasted a deal on immigration.
President Donald Trump announced on Friday that an agreement with Mexico caused him to back off on a threat of a 5-percent tariff on goods crossing the border. The tariffs would have increased to 25 percent, which was particularly worrisome to the auto industry.
As part of the new agreement, Mexico will take new steps aimed at stopping immigrants, many of whom are traveling from Central American countries, the Associated Press reports. A statement from the State Department said that Mexico will "take unprecedented steps to increase enforcement to curb irregular migration."
The proposed tariffs were widely opposed, particularly in the auto manufacturing and auto parts industries, which do tens of billions of dollars' worth of business across the border. One Toyota executive estimated that it would have cost the company more than $1 billion.
According to a report in Reuters on Monday, Trump threatened again to push tariffs if Mexico didn't follow through with its immigration measures.