Trump may delay Mexico tariffs, aide says as trade talks resume

U.S President Donald TrumpReuters  Carlos Barria

President Donald Trump greets Senator Ted Cruz while visiting a volunteer center packing emergency supplies for residents impacted by Hurricane Harvey on September 2, 2017, in Pearland, Texas.

Trump also noted: "If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday!" The tariff rate could eventually reach as high as 25 percent, the White House said.

With U.S. companies already footing the costs of escalating trade tensions between Washington and Beijing, tariffs on Mexico would create an additional financial burden for American businesses.

"This new proposal is not good for Toyota", said Barr.

Mexican and US officials are set to resume talks in Washington on Thursday aimed at heading off punitive tariffs on Mexican goods as President Donald Trump called for Mexico to take more action to curb migration at the southern USA border.

Mexico's peso, which has been battered by fears of a trade war with its biggest market, strengthened more than 0.5% against the dollar after Trump's comments. "The real problem is that the Democratic majority in Congress is not working with this administration to provide funding for border infrastructure and more border patrol agents".

Marc Short, Vice President Mike Pence's chief of staff, said the US plans to file an official notice today that would raise tariffs effective Monday but that these could be delayed or canceled over the weekend by President Donald Trump.

Mr Trump vowed import duties of 5% will take effect on Monday unless Mexico stems the flow of migrants to the US.

Negotiators from the two countries will resume talks in Washington on Friday aimed at reaching a deal, said Short, who is Vice President Mike Pence's chief of staff.

All of which is to say: Mexico had a wide variety of reasons to believe that Trump would ultimately back down. "They need to keep the pressure where it needs to be applied".

White House spokeswoman Mercedes Schlapp said in an interview that conversations were continuing but "it looks like we're moving toward this path of tariffs because what we've seen so far is that the Mexicans, what they're proposing, is simply not enough".

He said he'd talked to Kentucky farmers who are anxious and that there's "gathering momentum" among farm state Republicans.

"He is absolutely, deadly serious", Mulvaney told Fox News Sunday. Republicans control 53 of the Senate's 100 seats.

The tariffs carry enormous economic implications for both countries, and politically they underscore a major ideological split between Trump and his party.

Mexico's border with Guatemala is 1,138 kilometers (707 miles) long, much of it through open grassland and jungle. There are four major auto assembly plants in the state, employing almost 95,000 people.

"It's very chaotic. We might be able to put up with 5% for a little bit, 10% maybe", said Guillermo Valencia, president of Valencia International, a customs broker in Nogales, Arizona.

He said he's also anxious that tariffs would hurt efforts to get the trade package approved.

USA authorities say more than 100,000 undocumented migrants, mostly from the three Central American countries, have crossed into the United States in recent months.

Lesley Clark works out of the McClatchy Washington bureau, covering all things Kentucky for McClatchy's Lexington Herald-Leader. So to impose tariffs under IEEPA, Trump either has to (a) issue a brand-new executive order or (b) amend his earlier executive order to include IEEPA.

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