U.S. Firms Struggle To Prepare For Tariffs On Mexican Goods
Experts have weighed in on dragging negotiations between the United States and Mexico, noting that American importers have yet to prepare themselves for the looming tariff impositions expected to take effect on Monday.
In an interview with CNN, Senior Vice President for International Policy at the U.S. Chamber of Commerce, John Murphy, argued that the threat of tariffs on all Mexican goods next week is an issue that remains as a shocking and anxiety-igniting scenario.
"The writing's on the wall already that many simply will not be ready to pay duties beginning on Monday," Murphy pointed out. Talks for U.S. President Donald Trump's immigration demands are still on but U.S. importers are struggling with the tariff threat.
The U.S. Customs and Border Protection has not received the list of goods that will receive five percent in tariffs, the agency confirmed as of Thursday. Trade and Customs Attorney Lenny Feldman noted that both analysts and importers are questioning if Mexico-manufactured goods with American parts will also be part of the list.
The White House has yet to respond to queries from business owners trading with Mexican firms. It is worth noting that Mexico is among the United States' most significant trading partners.
On a daily basis, almost $1 billion in trade goods were exchanged between the U.S. and Mexico last year. With tariffs looming over the weekend, analysts are unsure if the said figure will still be reached if the tariff imposition pushes through.
As if responding to Trump's trolling on tax duties, the Mexican government has tightened security on the southern border. According to The Guardian, Guatemala, in particular, has been affected by the tightened border security.
The local government of Guatemala has deployed police and soldiers on the frontier line of the southern border in hopes of easing the pressure from the U.S. president. Vice President Mike Pence did say that the White House was "encouraged" about proposals laid out by the Mexican delegation.
However, Pence revealed that Trump has not yet given any update on blocking his tariffs on Mexican goods. He further explained that the President has the final say, especially since no official deal has been reached as of Thursday evening.
Meanwhile, some economists noted that Trump's tariff tirades against both China and Mexico could play a key role in hurting the American economy's growth. According to CBS News, UBS analysts predicted that the U.S. economy will most likely be weaker in 2020 due to the White House's trade wars.
So far, the damage has not been too evasive among various American markets. However, analysts believe that China and Mexico may soon find more welcoming trading allies. In this scenario, the U.S. economy could get weaker as former trade allies shift away from American partnerships.