White House trade adviser says tariffs on Mexico may not happen

Trump trade adviser tells CNN tariffs on Mexican goods may not take effect because the US has 'the Mexicans' attention'.

    US tariffs on Mexican goods are scheduled to come into force next week if a deal over migration isn't reached [Daniel Becerril/Reuters]
    US tariffs on Mexican goods are scheduled to come into force next week if a deal over migration isn't reached [Daniel Becerril/Reuters]

    White House trade adviser Peter Navarro said on Wednesday that a United States plan to impose tariffs on Mexican goods may not have to take effect, offering a glimmer of hope for Mexico and US businesses concerned that the levies could badly hit both consumers and companies.

    Navarro told CNN that the tariffs, due to come into force next week, might not be needed because the US now has "the Mexicans' attention" on stemming illegal immigration.

    President Donald Trump unexpectedly told Mexico last week to stem the flow of undocumented migrants attempting to enter the US via Mexico, or face five percent tariffs on all its exports to the US - levies that would rise to as much as 25 percent in the coming months. 

    In talks hosted by US Vice President Mike Pence on Wednesday, Mexican officials are seeking to persuade the White House that their government has done enough to rein in migration and avoid looming tariffs.

    "We believe that these tariffs may not have to go into effect precisely because we have the Mexicans' attention," Navarro said.

    In recent years, US authorities at the southern border with Mexico have faced an increase in mostly Central American families and unaccompanied minors seeking asylum to escape criminal violence in their home countries.

    Trump, who was in Britain to commemorate the 75th anniversary of the World War II D-Day invasion on Wednesday, said in London on Tuesday that it was "likely" the first wave of tariffs, set for next week, would go ahead.

    He has faced significant resistance within his own Republican Party over the threatened tariffs, with many lawmakers concerned about the potential impact on cross-border trade and on US businesses and consumers.

    Some Republicans have told the White House not to count on the same level of support within the party that it received earlier this year when Trump declared a national emergency to divert funds to build barriers at the border. Democrats opposed that move.

    "We're not real fond of tariffs, so don't assume you can have the exact same level of support. That was my basic message," Republican Senator Ron Johnson told reporters after a meeting between lawmakers and White House officials on Tuesday.

    The tariff threat has also raised questions over the future of a three-way deal with Canada to replace the North American Free Trade Agreement. Pence is the Trump administration's point person for getting Congress to approve the new agreement, known as the United States-Mexico-Canada Agreement (USMA), which he has pledged will happen this year.

    Mexican Foreign Secretary Marcelo Ebrard is scheduled to attend the talks on tariffs and migration, set to take place in Washington on Wednesday. Ebrard has said the threatened tariffs would be devastating to Mexico's economy and would not stop the waves of migrants from crossing the US border.

    The Mexican delegation is expected to try to show the White House that authorities are taking steps to stem the flow of migrants, with Mexico detaining double the number each day than it was a year ago.

    But Mexican President Andres Manuel Lopez Obrador has said he wants to persuade Washington to help tackle the causes of migration by investing in Central America to create jobs and speed up economic development.

    SOURCE: Reuters news agency