Friday, 1 July 2022 – 10:37

Mexican president holds rally after proposed tariffs rescinded

The Mexican president, Andrés Manuel López Obrador, held a rally on Sunday commemorating a deal being struck with the US, avoiding possible tariffs on Mexican goods.

The tariffs were originally proposed by US president Donald Trump via Twitter on May 30, when he said “On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied, at which time the Tariffs will be removed. Details from the White House to follow.”

The tariffs would have been implemented in stages, with them starting at a five percent tariff on all goods coming to the US from Mexico, and gradually increasing over the next few months, capping off at 25 percent by the beginning of October. 

The deal made between the two countries helps to address a key issue that Trump has been decrying since before he got elected, illegal immigration into the US. What the State Department has said is that Mexico agreed to send 6,000 troops to police their southern border to deter illegal immigration into Mexico, which would, in theory, reduce immigration into the US. In addition, those that are attempting to enter the US seeking asylum will be “rapidly” returned to Mexico, who will in turn host the migrants while their claims are processed. 

While Trump has stated that this deal was arrived at because of his decision to suspend tariffs on Mexican goods, a New York Times report says that the decision to send troops to Mexico’s border and take in asylum seekers was reached months ago, the former in March and the latter in December. Trump responded to the NYT report by saying the article is wrong, a profitable deal was struck between the US and Mexico, the paper is failing and the NYT are the enemy of the people. 

Despite the tariffs being possibly unnecessary to get what Trump wanted from Mexico, it is also possible that there might have been action in Congress to prevent the tariffs from taking place. While Republicans have almost universally accepted previous tariffs implemented by Trump while in office, there were some grumblings among Congressional Republicans that they would vote to shutdown attempts by Trump to place new tariffs on Mexico due to the increased taxes consumers would pay because of the tariffs.

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