June 9, 2019 - President Trump has dropped the threat of a 5% tariff on all Mexican imports after reaching a deal with Mexico on measures to stem the flow of migrants pouring into the U.S. The increase was set to take place Monday, June 10.
The agreement helped avert a potentially devastating trade fight for both countries. The U.S. imported $347 billion in goods from Mexico in 2018, and a 5% tariff on all imports would have cost billions of dollars for companies across a range of industries.
The State Department released a statement saying that the two countries would continue discussions on immigration issues, noting "further actions" may be taken if these measures don't work as intended.
BDP International is continuing to monitor this situation and will provide updates to customers as necessary. As always, should you have any questions or concerns, please reach out to your local BDP representative.
Sources: The Wall Street Journal, Supply Chain Dive