Mexico’s promise of tougher immigration enforcement has appeased President Trump enough to back down from a five percent tariff on all Mexican imports. This is good news for manufacturers as the tariffs would increase production costs. It is also a positive for the USMCA as tariffs were another roadblock to the ratification of the restructured trade agreement. There are a still a couple of changes that need to be made before there is true progress toward the ratification of the USMCA, among the changes required by skeptics are labor, environmental and enforcement provisions.
The quick 180 on tariffs on Mexican imports by the Trump administration shows how important it is to proactively prepare for disruption so you are prepared for whatever lies ahead as things can change quickly.