Trump Nixes Plans For Mexican Import Tariffs After Reaching Immigration Deal

U.S. automakers importing cars from Mexico have received a reprieve on tariffs after President Donald Trump secured an agreement on migration with the neighboring country.

The President had been threatening to impose tariffs on Mexican goods imported into the U.S. for months in a bid to encourage the country’s government to step up enforcement on illegal immigration.

Trump announced on May 30 that a 5 per cent tariff on all Mexican imports to the U.S. would go into effect on June 10 and eventually increase to as much as 25 per cent by October. Following the deal, these tariffs have now been suspended.

Also Read: Automakers Scrambling To Prepare For New Tariff, Could Increase Prices Of Mexican-Made Models By $8,500

“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico,” Trump said in a tweet. “The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended.”

In total, there are 39 new cars and trucks built by U.S. companies in Mexico and imported to the States. Auto News reports estimates from Deutsche Bank indicated that General Motors would have taken a $6.3 billion hit before interest and taxes if the full 25 per cent tariff was enforced. FCA would have been lost $4.8 billion and Ford up to $3.3 billion.

Car manufacturers were left scrambling last week when President Trump announced the proposed tariffs as, according to LMC Automotive, prices of Mexico-imported vehicles could have risen by an average of $8,500. Analysts also suggested that, if implemented, the 25 percent tariff would have cut new car sales in the United States by up to 1.5 million units annually.

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  • Stephen G

    Let’s just hope that this deal is as solid as the North Korean no missile testing deal.

    • Alduin

      Instead the big three will launch their cars over the border with illegals inside them to assist getting them to desperate dealers in time.

  • Alduin

    Maybe the “big three” shouldn’t be building their vehicles in Mehico in the first place?

  • Alduin

    Mary Barra is an awful CEO.

  • Super Rob

    Mexico said we will never pay for a wall. Instead they are going to spend billions to enforce their northern and southern borders forever.

  • Stigasawuswrecks

    Too bad Mexico made this deal months ago.

  • Enter Ranting

    The feckless orange idiot created a crisis, proposed a tariff that the Republicans in the Senate wouldn’t pass, and then backed down. End of story. Sad.

  • Enter Ranting

    Um, Drumpf told us we didn’t have to worry about North Korea anymore, that he single-handedly solved the problem with his best friend Kim over lunch. Remember?

  • Porkopolis

    Turns out everyone’s spazzing out last week was for naught.

  • Alduin

    “Enter Ranting” is just another dumbass clueless liberal idiot.

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