Donald Trump planned to impose tariffs on Mexico, as a result, the tariff would have made the technologies expensive. President Trump planned to impose a tariff of 5% on Mexico. This could have made a major impact on technology and cars that Americans love.
Donald Trump has tweeted about the plan change and informed about the suspension. The rollout of the plan was earlier scheduled on Monday.
I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended. Mexico, in turn, has agreed to take strong measures to….
— Donald J. Trump (@realDonaldTrump) June 8, 2019
The impacts of the tariff may not seem more than the tariffs that Donald Trump administration imposed on China earlier in 2018. Americans generally depend for products like iPhones, computers, and TVs, as well as the inside components on Chinese manufacturing.
Cause of plan change
On May 30, 2019, the Donald Trump unexpectedly announced about imposing a tariff of 5% on Mexico for all the imports. Later, on June 10, he announced 10% from July 1, and by another 5% each month for three months, until the time when illegal migrants won’t stop coming through Mexico into America.
Donald Trump’s fear is about imposing large tariffs on the United States’ most growing trading partner. As a result, both the country can face economic fall and diplomatic crises.
Mexico is known as one of the US’s closest allies. Mexico is the largest producer of cars to be sold in the US. Computer exports, after China, is from Mexico as well. Tariff imposing plan feared North American companies.
Companies including automakers and agricultural firms, have supply chains across Mexico, the United States and Canada. They have warned that the tariffs would increase costs for American consumers. Their major imports depend upon these supply chains.
Hence prompt to take back the action from the Mexican government, as new trade barriers form would damage the United States economy.
Donald Trump signs joint-agreement
A declaration agreement was signed in by both the countries and Mexico agreed to immediately boost up the entire border by a program that will allow migrants seeking asylum in the US to go back to Mexico while they wait for judgment.
The country decides to increase surveillance on the flow of migrants headed to the US. National Guard troops are to be used on its southern border, the declaration said.
Trump tweeted on Saturday about the agreement to be successful for both US and Mexico in the coming months.