Republican lawmakers warn that President Trump has imperiled the ratification chances of his U.S.-Mexico-Canada Agreement on trade by announcing a 5% tariff on all Mexican goods. Trump said the tariff was needed to force Mexico to crack down on immigrants transiting the country on their way to the United States, but GOP lawmakers said tying the two issues together wouldn’t help either one.
“I’m concerned that the Admin’s announcement last night of potential new tariffs on #Mexico over matters unrelated to trade will hurt our economy & jeopardize passage of #USMCA. The Admin & Congress should work together to secure the border and approve USMCA w/o delay. #jobs,” tweeted Sen. Rob Portman, R-Ohio, who was a U.S. trade representative under President George W. Bush.
He added: “I support @POTUS’ proposals to fund border security & change certain laws that encourage people to come from Central America. Let’s focus on solving the crisis at the border but not hurt our economy and endanger an important @POTUS goal — a better trade deal w/ #Canada & #Mexico.”
President Trump announced Thursday he was placing a 5% tariff on all Mexican goods June 10, with the tariff increasing 5% every month until the “illegal immigration problem is remedied.” Mexican President Andrés Manuel López Obrador had introduced the USMCA deal to his country’s legislature for ratification just hours before. The White House that day also began the process to submit the agreement to Congress for ratification.
Sen. Joni Ernst, R-Iowa, warned Friday that new Mexican tariffs could harm passage of the deal in both countries. “If the president goes through with this, I’m afraid progress to get this trade agreement across the finish line will be stifled. While I support the need for comprehensive border security and a permanent fix to illegal immigration, this isn’t the right path forward. I’m asking the president to reconsider.”
Rep. Kevin Brady, R-Texas, the top Republican on the House Ways and Means Committee, which has jurisdiction on trade issues, said an alternative solution was needed and needed quickly. “[T]he new tariffs are not yet in effect, so there is a window here for both countries to find common ground. It is in both of our interests to do so, economically and for stronger security. Lawmakers in Congress and Mexico recognize that resolving this issue positively will be essential to passage of the new USMCA that will benefit workers, farmers, and businesses in both countries.”
Shortly after Trump’s announcement Thursday, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, called the decision a “misuse of presidential tariff authority and counter to congressional intent,” adding that it “would seriously jeopardize passage of USMCA.”
Trump ignored the criticism from members of his own party, tweeting Friday, “In order not to pay Tariffs, if they start rising, companies will leave Mexico, which has taken 30% of our Auto Industry, and come back home to the USA. Mexico must take back their country from the drug lords and cartels. The Tariff is about stopping drugs as well as illegals!”
