situation report

Jun 8, 2019 | 01:42 GMT

2 mins read

U.S., Mexico: Trump Announces Deal With Mexico, Suspends Tariff Threat

What Happened: U.S. President Donald Trump announced on Twitter on June 7 that Mexico and the United States have reached an agreement over immigration-related issues. As a result, the 5 percent tariffs on imports from Mexico that Trump had planned for June 10 have been indefinitely delayed. The State Department later released details of the agreement. Among other things, Mexico agreed to deploy its national guard throughout the country with a focus on its southern border, and to change certain migration protocols to allow the United States to send asylum seekers to Mexico until their case is heard. 

Why It Matters: For now, Mexico has avoided the imposition of tariffs by Trump that could have pushed the country into recession. But the threat looms large over Mexico, and it could return if there is still not a reduction in the number of migrants flowing to the United States. 

Context: On May 30, Trump threatened to impose tariffs on Mexico if the two countries could not reach a deal over immigration. Those tariffs were scheduled to start at 5 percent from June 10 and increase every month until a ceiling of 25 percent was reached by Oct. 1. 

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