Mexico Agreement Tariffs

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Mexico Agreement Tariffs: What You Need to Know

Recently, the United States and Mexico announced an agreement to suspend the proposed tariffs on all Mexican goods. This decision puts an end to months of tense negotiations between the two countries, and it’s expected to lead to more stable economic relations in the future.

But, what exactly does this agreement entail, and how will it affect businesses and consumers?

Here’s what you need to know about the Mexico Agreement Tariffs:

1. The United States proposed the tariffs on all Mexican goods in May 2019 as a response to the surge of illegal immigration from Mexico. The proposed tariffs started at 5% and were expected to increase by 5% each month until they reached 25% in October 2019.

2. The agreement between the two countries calls for Mexico to take more aggressive measures to curb illegal immigration, including deploying its National Guard to its southern border with Guatemala, and allowing more migrants seeking U.S. asylum to remain in Mexico.

3. In exchange, the United States agreed to suspend the tariffs indefinitely. If Mexico fails to deliver on its promises, the United States can resume the tariffs.

4. The agreement is expected to have a positive impact on the U.S. economy, as it would have been hurt by the tariffs. According to a study by influential bank, Goldman Sachs, the proposed tariffs would have led to a significant increase in prices for U.S. consumers, particularly for goods such as avocados, tequila, beer, and automobiles.

5. The Mexico Agreement Tariffs will also likely have a positive impact on the Mexican economy. The uncertainty caused by the threat of tariffs was already having a negative effect on businesses in Mexico, and if the tariffs had been implemented, they would have led to significant job losses and economic damage.

In conclusion, the Mexico Agreement Tariffs is a welcome development for both the United States and Mexico. The agreement shows that the two countries can work together to resolve difficult issues, and it will prevent an unnecessary and harmful trade war. However, it’s important to remember that this is just a temporary solution, and there’s still much work to be done to address the underlying issues of immigration and cross-border cooperation.