The United States will impose a 5% tariff on all goods coming from Mexico starting on June 10, which will increase to 10% on July 1 and then an additional 5% each month — capping out at 25% on Oct. 1. The measure is in response to “Mexico’s passive cooperation” in the fight against undocumented immigrants coming across the border, said President Trump. Mexican and U.S. officials are expected to meet in Washington Friday.
Cathy Thom评论了
WH statement says they will go up 5% each month up to 25% by October. Needless to say, this is a unique use of tariffs....
Global Business Executive | Board Director | CNN Contributor | Keynote Speaker | Webby Award Nominee | Host of "The Moment with Ryan Patel" Filmed at The HP Garage | Making Complex Topics Simple | LinkedIn Top Voice |
Was live on Euronews "Good Morning Europe" with Rosie Wright breaking down the latest news that the US will be adding tariffs to all goods from Mexico starting June 10. Here are few things to watch and know: - It will initially be a 5% tax rate and then increase 5% every month until October (totaling to 25%). Mexico sent the US $346.5 billion of goods last year - The timing of this puts the USMCA Deal (replacing the NAFTA deal) potentially in jeopardy - Industries that will be impacted - Mexico is the largest foreign supplier of agricultural products to the US, totaling $26B last year (according to USTR). As well as the auto industry, especially Fiat Chrysler, Ford, and GM have they have billions of dollars in play due to both production and suppliers in Mexico -This seems to immediately create a dialogue between both countries and it will be very interesting to see how the initial conversations go. #tariffs #US #Mexico #Trade #Economy #Business #Newsroom
Two weeks ago, when the China-US trade war escalated, I noted that hiring was already slackening in export-oriented industries like manufacturing and agriculture. The opening of a second front on the US’s southern border surely won’t help.
This morning's news that China will impose retaliatory tariffs on June 1st probably means more bad news for hiring in export-oriented industries like agriculture and manufacturing. These industries ramped up hiring faster than the US labor market as a whole during 2017 and early 2018, but these "soft tariff underbelly" sectors have softened noticeably since last summer - even as other industries in the service sector have picked up the slack, and overall US hiring has rebounded from its year-end hiccup. Given the surprising nature of the US tariffs announced last week, it's possible employers in these sectors may have been surprised... so hiring in these sectors could take another leg down. As for the rest of the economy - it's less vulnerable than manufacturing and agriculture, since it's oriented primarily toward domestic demand. But given that we saw a lot of sectors pull back during the stock market swoons of late 2018, I wouldn't rule out a wilting of the service sector green shoots either.
Clint U.评论了
Head of Economics | Company Growth Driver | Business Partner | Opinion Columnist
POTUS just announced tariffs of 5% on all goods coming in from Mexico starting June 10, hoping this will stem the tide of migrants. A few thoughts. First, it looked like we were getting closer to passage of USMCA. That feels upended now. Second, the US and Mexico economies are far more integrated than the US and China and the US imports quite a bit from Mexico. Third, wasn’t part of the plan to push final assembly away from China and to Mexico? Seems less likely now. At some point my thought was that Trump wanted to close some trade wars to focus exclusively on China. It looks like he wants to open multiple fronts now. Sad. S&P futures down sharply. Makes sense.
I kind of hope Mexico just closes their borders to US individuals and goods for a month. They could do even better by asking their companies to cease operations with us for that period as well. They could also compensate those that would come to the US as farmhands to stop them from coming over. Cruises, vacations, work, etc all effected. Lots of refunds All the food that get imported, huge shortages within short order. Especially produce. Domestically, lots of our farmers and industries would be severely impacted, such as the sugar yields. Coke and Pepsi would both hurt from the loss of sales in Mexico because of a sugar shortage. Companies like Cemex would hurt road construction during the times it is most needed throughout a large part of the US. Same with other construction. Cost overruns and delays could significantly hurt. Transient worker stoppage would result in many crops we do grow being left to rot. Automation and machine harvesting does not work on many crops that need a human eye/hand to pick. Mexico could show exactly how vital they are to our economy. It would cost their government pennies to the long term effect the US would feel.
President Trump’s surprise vow to slap new tariffs on Mexican goods has an unintended consequence: It further undermines the chance of a trade resolution with China. - The Mexican tariffs came as a shock as the White House just took a formal step to kickstart approval of the United States Mexico Canada Agreement. - “How can you trust Trump to honor a deal?” said Chris Krueger, Washington strategist at Cowen. - “Trump’s readiness to hit a trading partner with new tariff threats soon after striking a trade deal will make China still more cautious about signing up to a deal that Trump then reneges upon, humiliating its leadership,” said Krishna Guha. policy strategy analyst at Evercore. https://lnkd.in/ewggPDw
General Motors, Ford Motor Company, and FCA Fiat Chrysler Automobiles each have billions of dollars at stake due both production and suppliers in Mexico.
Import from Mexico? Keep a very close eye on this, potential 5% tariff on ALL goods coming into the US from Mexico effective June 10. https://lnkd.in/g7gRYKh
Head of Economics | Company Growth Driver | Business Partner | Opinion Columnist
POTUS just announced tariffs of 5% on all goods coming in from Mexico starting June 10, hoping this will stem the tide of migrants. A few thoughts. First, it looked like we were getting closer to passage of USMCA. That feels upended now. Second, the US and Mexico economies are far more integrated than the US and China and the US imports quite a bit from Mexico. Third, wasn’t part of the plan to push final assembly away from China and to Mexico? Seems less likely now. At some point my thought was that Trump wanted to close some trade wars to focus exclusively on China. It looks like he wants to open multiple fronts now. Sad. S&P futures down sharply. Makes sense.
President & Owner, Scribe Soup LLC
The only way to stop the flow of migrants long term is to improve conditions in the countries of origin from where these people are coming enough that they will be able to stay there. No one uproots their whole life with just what they can carry unless they feel they have no other choice. And the American appetite for drugs is what fuels the cartels, gangs, and corruption that cause the violence and poverty from which these people flee, and also contributes to similar cartel issues in Mexico. We need to seriously address our own drug culture and addiction issues while stemming the flow of our own weapons into these countries. If there is reduced demand for illegal drugs here, the bottom line of the cartels with guns to the heads of people there, and here, will be undermined. Everything else that does not reduce or eliminate the factors which push migrants here is mere short-term treatment of symptoms.