Threat of Tariffs Continues to Loom Over Mexico
The threat of tariffs continue to hang over Mexico until the US is satisfied that it has done enough to curb the influx of illegal immigrant
US may have called off the tariffs on Mexico for now, but it’s too soon for Mexico to breathe a sigh of relief. The threat of tariffs continue to hang over Mexico until the US is satisfied that it has done enough to curb the influx of illegal immigrants through its borders and into the US.
On Monday, the Trump administration announced that it could still impose tariffs on Mexico if results are not evident in four to six weeks. According to the deal between the two countries, Mexico will have to allow asylum seekers to wait it out within its country until the US processes their application and grants them asylum.
For now, Mexico has also agreed to deploy an additional 6,000 National Guard militarized police to strengthen its southern border shared with Guatemala. While the US wanted Mexico to offer asylum seekers refuge as a “safe third country”, Mexico isn’t too keen on giving into this demand.
For now, the decision to put off tariffs has boosted the sentiment in stock markets and has helped the Mexican peso regain over 2% of its value against the USD. At the time of writing, USD/MXN is trading at a little above 19.21.
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