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Republicans reject tariffs on Mexican products

Republicans reject tariffs on Mexican products

Republicans reject tariffs on Mexican products
June 07
10:14 2019

Haga » Click Aquí « para LEER esta Historia en Español

THE MIGHT GO INTO EFFECT ON JUNE 10TH

Newsroom/El Comercio de Colorado

Democratic Senator Gary Peters, who represents Michigan, the epicenter of the auto industry in the U.S., explained that there is wide rejection to the tariffs Trumps is trying to impose on Mexican products. “My Republican counterparts are very concerned about these tariffs,” said Peters. His words came after a significant group of Republican legislators said they opposed the 5% tariffs announced by the president as a punishment for the flow of immigrants into the U.S.

Senator Ted Cruz told the media that if the consequence of Trump’s new strategy are massive new tariffs that destroy jobs in Texas and the rest of the U.S., that would have terrible results. The most affected by these new tariffs on Mexico are the three big auto manufacturers in the U.S. (General Motors, Ford and Fiat Chrysler), who produce many of the components they use in Mexico. Vehicles and auto parts are the main exports from Mexico into the U.S.

The most affected State would be Texas, that would lose up to 26,700 million dollars, while the companies based in Michigan would lose up to 14,000 million dollars. Michigan, state that hosts a big part of the production of vehicles, imported in 2018 about 56,00 million dollars’ worth of goods from Mexico. If a 5% tariff is applied to that, it represents 2,800 million dollars, number that could rise to 14,000 if the tariffs get to 25%, as promised. Other states affected by this issue are California, Illinois and Ohio.

Conversation

Vice president Mike Pence is leading the negotiations that the Trump administration is having with the Mexican Government. After the first work meeting between both governments there was no announcement regarding the suspension of these tariffs, that might go into effect on June 10th. Marcelo Ebrard, who represents the Mexican government on the negotiation, explained that this first meeting was focused on the actions the Mexican government has been taking to stop the flow of Central American immigrants into the U.S.

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