Tech Industry Greets Lifting of Mexican Import Tariff Threat With Virtual Silence
Tech industry reaction was sparse to President Donald Trump's Friday tweet lifting the threat of 5 percent tariffs on Mexican imports from taking effect Monday (see 1905310014). Trump had threatened to hike the tariffs incrementally each month to 25 percent by Oct. 1 if Mexico didn’t solve the influx of migrants through the southern U.S. border (see 1906060001).
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Lifting the threat of tariffs "is good news for American businesses and consumers," said the U.S. Chamber of Commerce, one of the few groups to weigh in with a reaction. With Mexican tariffs "now off the table, it is critical that Congress turn its attention" toward enacting the U.S.-Mexico-Canada Agreement (USMCA) on free trade, said the Chamber Saturday.
Hours before Trump's Friday's tweet, the Chamber organized 140 trade associations from various industries to warn "ahead of the administration's looming June 10 deadline" that “imposing unilateral tariffs on Mexico jeopardizes a successful bipartisan vote” in Congress to ratify USMCA. “We are committed to working together to pass USMCA through Congress, but a successful effort depends on keeping North American trade tariff-free," they said.
Tech groups signing the statement included BSA | The Software Alliance, CompTIA, the Information Technology Industry Council and the Telecommunications Industry Association, but not CTA, which is a big supporter of USMCA and recently took out a full-page Washington Post ad urging Congress to ratify it (see 1904300160). CTA didn't comment Monday.
The Chamber throughout the week had threatened a court challenge to block the tariffs, partially on grounds that Trump lacked presidential authority under the International Emergency Economic Powers Act to impose duties on the imports of a foreign country. “Whoever the president is and whatever the reason, we’re a rule-of-law-based country, and imposing taxes on American families by edict, without force of law, is a pretty dangerous precedent,” Neil Bradley, the Chamber’s chief policy officer, told Fox Business News Tuesday.
Lifting of the tariff threat "should be viewed as a welcome relief to companies producing in, or importing from, Mexico," blogged customs expert Ted Murphy with Baker & McKenzie. "The threat of additional duties on imports from Mexico has been averted -- for now," he said Monday. "Everyone should keep in mind that duties that can be imposed by a tweet, and be taken away by a tweet, can always be re-imposed by a tweet."
The deal averting the tariffs requires Mexican legislative approval, tweeted Trump Monday. “If for any reason the approval is not forthcoming, Tariffs will be reinstated!"