U.S. Tariffs on Goods Made in Mexico Averted – At Least for Now
On Friday, the United States reached a trade deal with Mexico, averting U.S. President Donald Trump’s proposed 5-percent tariff on goods made in Mexico and imported into the United States. The tariff would have hurt tech companies such as Dell, HP Inc., Lexmark International, and Hewlett-Packard Enterprises.
Previously, Trump had said the United States would impose a 5-percent tariff on goods imported from Mexico beginning June 10th if the government of Mexico didn’t take steps to stop the flow of migrants and asylum seekers traveling from Mexico into the United States. Trump had also said the 5-percent tariff could rise to 25-percent by October 2019 if Mexico is seen as not complying.
HP Inc. manufactures some PCs and printers in Mexico, while Lexmark makes printer supplies such as toner cartridges in Mexico. Several firms also make remanufactured, third-party toner cartridges in Mexico.
While the Mexico tariffs are off, Trump’s proposed ramped-up tariffs on Chinese goods imported into the United States are still on, with Trump threatening today to impose large tariffs on $300 billion worth of Chinese imports if China’s leader, Xi Jinping, does not meet with him in Japan later this months, according to The Washington Post.