Trump’s Original Planned Tariffs Canceled

Credit: AlexLMX

(Español) President Trump’s proposed tariffs that were set to take effect today, June 10, 2019, were abruptly canceled by the president. Last week, the president announced a tariff on all products coming into the United States from Mexico. According to the president and administration officials, the tariffs were in response to what they saw as Mexico’s unwillingness to properly stem the flow of migrants through the country to the United States southern border. The tariffs were set to take effect on Monday, June 10, 2019, at 5% and increase each month by 5% until the administration felt Mexico has done enough to address the issues at hand. The tariffs would hit a maximum of 25% on goods on October 1, 2019. On June 7, 2019, President Trump says the tariffs would not go into effect after what, he claims, is an agreement between the United States and Mexico, although no official word from the Mexican government or administration officials has been released as to the details of the plan.

In the lead up to the first set of tariffs, many industries began to voice their concern and disagreement of the tariffs. With Mexico being the United States largest trading partner, there was growing concern the tariffs would negatively impact the economy at home. Many companies and industries take advantage of the lower labor cost in Mexico and economists worry the tariffs would result in those companies simply taking their factories to other nations instead of relocating to the United States. The industry initially hit the hardest was the automotive industry, whose stocks dropped vastly at the announcement of the tariffs. Many consumers were also wary of the tariffs, as the price would inevitably rise in everyday products such as alcohol (specifically tequila and Mexican beer), electronics (many components are made in Mexico and put together elsewhere), produce (tomatoes, avocados, limes), and gas (Mexico is the largest importer of crude oil to the United States.)

While the tariffs will not go in place as originally planned, there is still no telling what the administration’s plans are for the future.