How Trump's Mexico threat imperils his own economic agenda

A worker carries a bunch of harvested bananas to be exported, at a farm in Ciudad Hidalgo, Chiapas state, Mexico, Friday, May 31 2019. If the tariffs threatened by United States President Donald Trump on Thursday were to take effect, Americans may see higher prices in grocery stores. The U.S. imports $12 billion of fresh fruits and vegetables from Mexico. (AP Photo/Marco Ugarte)
A stock monitor shows exchange rates on a storefront in Mexico City, Mexico, Friday, May 31, 2019, a day after U.S. President Donald Trump's threat to impose a 5% tariff — that could increase incrementally to 25% — on all Mexican imports. The economic impact for Mexico was swift. The peso dropped more than 3% against the U.S. dollar by Friday morning. (AP Photo/Ginnette Riquelme)

WASHINGTON — President Donald Trump's vow to impose new tariffs on Mexican imports risks sabotaging not just his drive to forge more favorable trade deals but also a U.S. economy that he says has strengthened under his watch.

Trump's announcement Thursday that he would impose a 5% tax on all Mexican imports on June 10 — and raise it to 25% by Oct. 1 — unless Mexico stopped a surge of Central American migrants into the U.S. would swell the prices Americans pay for countless items from avocadoes to clothes to medical devices.

His threat, which drew an outcry from a broad span of business groups and political figures, suddenly cast doubt on prospects for a new North American trade agreement. Trump last year negotiated the deal, formally called the U.S.-Mexico-Canada Agreement.

Must Read

Global travel spending still growing but at a...

Aug 22, 2016

Global travel spending is still growing, although at a slower pace, despite weakening economies and...

US new-home sales climb to best level since late...

Aug 23, 2016

US sales of new homes soared 12.4 percent in July to best level since October 2007

The Latest: Trump calls Clinton 'bigot' who only...

Aug 25, 2016

Donald Trump is declaring that Hillary Clinton 'is a bigot' in his latest outreach to minority...

Yellen suggests rate hike is coming but offers no...

Aug 26, 2016

Yellen says 'the case for an increase' in rates has strengthened but offers no timetable

Iowa at center of debate over 'shadow insurance'...

Aug 30, 2016

Life insurance companies are setting up "shadow insurers" to take on some of their liabilities and...

Sign up now!

About Us

In The Headline sought to bring professionalism back into journalism, bringing you only the most exclusive and the most impactive news from all over the globe.

Contact us: sales[at]intheheadline.com