Source: Canada US
Link: Tariff Turbulence Continues to Fly!
Putting all the hyperbole and posturing to one side, the recent agreement between Mexico and the U.S. which averted the tariffs can be found in the U.S.- Mexico Joint Statement released June 7, 2019. It consists of a few broad policy statements:
Upon announcing the agreement, President Trump stated Mexico agreed to the deal so as to “greatly reduce, or eliminate, illegal immigration come from Mexico into the United States.” The Joint Declaration goes on to state: “Both parties also agree that, in the event the measures adopted do not have the expected results, they will take further actions. Therefore, the United States and Mexico will continue their discussions on the terms of additional understandings to address irregular migrant flows and asylum issues, to be completed and announced within 90 days, if necessary.” More recent general press stories talk in terms of a one page document Mr. Trump was carrying around that shows a 45 day period, but that document has not been publicly released. It could be nothing or it could be significant, we simply do not know at this point,
Against this backdrop, the threat of the tariffs being imposed remains. Companies would, therefore, be wise to consider what action they need to take to prepare for that possibility. As of late on Friday, June 7th, the last working day before the tariffs were due to take effect, clear instructions had not yet been given to Customs and Border Protection (CBP) as to how the tariffs would be applied. This leads one to question whether the computer programming needed to start collecting the tariffs could be implement so as to be fully operational by Monday morning. The point being, companies would be wise to anticipate this last minute timing could be repeated.
So, if you are an international trader who imports goods across the U.S.-Mexico border, it would be prudent for you to take a handful of steps now:
Whether or not you agree with the use of tariffs to deal with an immigration issue, if tariffs are going to be imposed, that should at least be done in a way that allows the system to continue to function properly – but, given past history, be prepared for the chaos which is likely to ensue!