Vice President Mike Pence said the meeting with Mexico's Foreign Minister June 5 was positive, but emphasized that the Mexican efforts to stem migration from Central America -- and its proposals for future action -- "are not nearly enough." Pence, who spoke to reporters before leaving on a trip to honor the D-Day anniversary, said, "We made clear to them that President [Donald] Trump is going to continue to stand firm until we bring this crisis of illegal immigration at our southern border to an end."
Five hours before Vice President Mike Pence was to meet June 5 with Mexico's Foreign Minister Marcelo Ebrard, a former Mexican ambassador to the U.S. predicted that the 5 percent tariffs on all Mexican imports would be levied, and that they'd stay in place "at least a couple of days, or a couple of weeks."
With ACE not ready, customs bond insufficiency issues, and importers unable to take on financial responsibility for tariffs on Mexican imports, the customs brokers who work at the California-Mexico border asked CBP and the Office of the U.S. Trade Representative to delay implementation of 5 percent tariffs past June 10. The Pacific Coast Council of Customs Brokers and Freight Forwarders Associations sent a letter June 5 saying that its members are alarmed "that it will be impossible to comply, as the mechanisms for compliance are not available between now and June 10th."
Six weeks ago, the senior vice president of the U.S.-China Business Council believed the Trump administration's pressure was successfully empowering Chinese officials who believe in reforming China's capitalist/state-controlled hybrid economy. "I was pretty optimistic that we were, as a consequence, going to be able to say that the administration had achieved things that probably no previous administration had genuinely been able to achieve," Erin Ennis told an audience member at the Washington International Trade Association China trade panel May 29.
Many U.S. importers "tend to just assume things are on the up and up" with their vendors, said Pete Mento, vice president for global trade and managed services at Crane Worldwide Logistics. Mento, who conducted a webinar on free trade deals May 24, said that's a mistake. Mento said often "people are claiming free trade agreements simply because it was flown to the U.S." from a free-trade partner country. "You gotta be able to prove your stuff qualifies. Because if you can’t prove it, the government’s going to come down on you like the hammer of the gods," he said.
Treasury Secretary Steven Mnuchin, who faced many critical questions from House Democrats on the China trade war, told them that consumer goods were left until last for a reason, and that a decision on levying tariffs on the remaining imports from China -- including toys, apparel, cellphones and computers -- has not yet been made. “There won’t be any decision probably for another 30 to 45 days," Mnuchin testified at the Financial Services Committee May 22. He said that he had recently spoken to the chief financial officer at Walmart about the increase in tariffs on the third tranche of Section 301 tariffs and the possibility of tariffs on nearly all remaining imports.
The top Democrat on the Senate Finance Committee told U.S. Trade Representative Robert Lighthizer in a May 22 letter that panel blocking is a mistake, and that trying to use Section 301 tariffs to enforce trade commitments of Canada or Mexico won't work. Sen. Ron Wyden, D-Ore., wrote: "So far, the Administration’s justification for this mechanism has only increased my worry that the new Agreement will not be enforced." He acknowledged "certain improvements" in the labor and environment chapters, but said, "all of the obligations become meaningless if the United States cannot effectively and swiftly enforce them."
U.S. Trade Representative Robert Lighthizer would like some help from the Senate to move the House toward ratifying the new NAFTA, he said while speaking at the Senate Republicans' lunch about prospects for ratification and the work he's doing to get a trade deal done with Japan. Sen. John Kennedy, R-La., said Lighthizer told them to convince colleagues in the House to support it. "It was just cheerleading, 'rah, rah, sis boom bah,'" Kennedy complained. "I hope I'm wrong, but I don't understand why my colleagues think that Speaker [Nancy] Pelosi's going to agree to anything that will help the president. But I mean, I wish she would put the country first, but if you believe in watching what people do, not what they say, I'm not encouraged."
House Majority Leader Steny Hoyer, D-Md., said that U.S. Trade Representative Robert Lighthizer has been asking Democratic leaders for specifics on what they need him to do to get their support, and Hoyer said he thinks there will be "more productive conversations" on those specifics between Trade Subcommittee Chairman Earl Blumenauer, D-Ore., his staff, and the office of the USTR. "Those specifics are essential," Hoyer said in response to a question from International Trade Today during a May 21 press conference.
The Trump administration tried for months to insist that Mexico and Canada accept quotas on their steel and aluminum, and the fact that the administration lifted its tariffs on those metals on its NAFTA partners without any import restrictions shows "just how much the Administration has invested in passage of the USMCA," wrote Ted Murphy, managing partner of the Baker McKenzie office, in a blog post.