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Mon, Aug 28, 2017
Vol 1, Issue No. 33

Trade
One Tariff Crisis Is Averted. What’s Next?

After nearly two weeks of relentless pressure from not only lawmakers on both sides of the aisle, but also business executives, trade groups and global leaders, Pres. Trump’s threatened tariffs on Mexican imports that were slated to start at 5 percent July 1 and escalate monthly through October have been abandoned. Pres. Trump broke the news in a Saturday morning tweet, apparently satisfied that Mexico is taking steps to lower the surge in migration from its border into the U.S.

Published reports over the weekend suggested Mexico had actually promised to tighten its reign on migration across its southern border in March, months before the president threatened to levy tariffs against all Mexican imports two weeks ago.

But the apparent tariff resolution with Mexico will have no impact on Pres. Trump’s ultimate decision on whether to impose 25 percent duties on another $325 billion of Chinese imports, which would likely include footwear and apparel. That verdict is expected after the G-20 Summit in Osaka, Japan on June 28-29 where the president will have an opportunity for a face-to-face with China President Xi. On June 1, China raised tariffs to 25 percent from 5-10 percent on approximately $60 billion worth of U.S. imports that covered an estimated 5,000 products.