The US and Mexico have reached a deal after President Donald Trump threatened to impose a five per cent tariff on Mexican-made products crossing the border into the United States.
Trump raised the possibility of imposing tariffs on Mexico if the country did not take proper steps to curb the flow of central American migrants into the US.
In a tweet, the President said the tariffs, which were scheduled to be implemented by the U.S. on Monday, “are hereby indefinitely suspended,” after Mexico “agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border.”
“This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States. Details of the agreement will be released shortly by the State Department,” he added.
Media reports indicated the tariffs would hurt General Motors more than any other major American automaker, with the company importing 29% of its vehicle components from Mexico. By comparison, FCA imports 24% and Ford imports 17%.
In addition to vehicle components, GM also manufactures the Chevrolet Blazer, Chevrolet Trax, Chevrolet Equinox, GMC Terrain and certain versions of the Chevrolet Silverado and GMC Sierra 1500 trucks.
The tariffs would have also made for poor timing for GM, which just recently axed many of its sedans as it relies on crossovers and trucks like the Blazer, Terrain and Silverado to drive profits.
In a statement, secretary of state Mike Pompeo also thanked Mexican foreign minister Marcelo Ebrard for his “hard work to negotiate a set of joint obligations that benefit both the United States and Mexico.” Ebrard allegedly told Mexican president Andrés Manuel López Obrador that the country “emerged with our dignity intact,” following the negotiations with the US.