Trump threatens tariffs on Mexico over immigration: Live updates - CNN

White House press secretary Sarah Sanders dismissed any legal concerns with the President’s tariffs announcement.

Asked if there are concerns the action will get tied up in court, Sanders said:

“Not at all. The President has the legal authority to do this through IEEPA. In fact, that give him much broader authority than he’s taken on this front.”

For context: IEEPA is the International Emergency Economic Powers Act, which authorizes the President to regulate commerce after declaring a national emergency.

She continued, “This is a measured response to the authority that he has, there’s case law that supports it from precedent where this has been done in the past. And again, the President’s going to fulfill his duty, it would be nice if Congress would fulfill theirs.”

However: As CNN reported yesterday, privately, officials have conceded it’s not clear the White House has the legal authority to impose tariffs on this scale. They are concerned that, because of the scope, the mandate will potentially face legal challenges that could leave it tied up in the courts before June 10 even gets here. 

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https://www.cnn.com/politics/live-news/trump-mexico-tariffs-immigration-2019/index.html

2019-05-31 16:12:00Z
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Trump announces escalating tariffs against Mexico, starting at 5 percent, until illegal immigrants 'STOP' - Fox News

President Trump on Thursday abruptly announced a new 5 percent tariff on Mexico beginning in early June, saying the levy will "gradually increase" until the ongoing illegal immigration surge at the southern border is "remedied" and illegal migrants "STOP."

"On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP," Trump wrote. "The Tariff will gradually increase until the Illegal Immigration problem is remedied, ... ..at which time the Tariffs will be removed. Details from the White House to follow."

Fox News is told the tariff on all goods by land, sea, and air from Mexico will hike to 10 percent on July 1 -- and potentially increase substantially from there.

"If Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019," Trump said in a statement released later by the White House on Thursday. "Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory."

The statement added: "Thousands of innocent lives are taken every year as a result of this lawless chaos.  It must end NOW! ... Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States."

Specifically, White House sources told Fox News that Mexico would need to step up security efforts on the border, target transnational smugglers, crack down on illicit bus lines and align with the U.S. on a workable asylum policy. Mexico could use certain so-called choke points on the southern border to curb illegal migration sharply, according to the sources.

The Washington Post reported earlier in the day that the Trump administration was considering the move, and that it had broad support in the White House -- although some aides reportedly tried to talk Trump out of it.

“We are going to do something very dramatic on the border because people are coming into our country," Trump told reporters earlier Thursday.

The International Emergency Economic Powers Act of 1977 permits tariffs to be levied by the executive in the event of a national emergency originating from a foreign source. Trump said he was invoking the powers in the law and would use his "sole discretion" to determine whether Mexico had taken sufficient action.

"If Mexico does not take decisive measures, it will come at a significant price," Trump concluded in his statement.

The situation could complicate the legislative passage of the United States-Mexico-Canada Agreement (USMCA), sent to Congress by the White House on Thursday, which has aimed broadly to limit tariffs among the three countries.

However, the White House told Fox News it saw the matters as entirely distinct and did not anticipate complications for the USMCA.

Migrants seeking asylum in the United States lining up for meals provided by volunteers near the international bridge in Matamoros, Mexico. (AP Photo/Eric Gay, File)

Vice President Mike Pence was in the Canadian capital of Ottawa on Thursday to build support for the USMCA. The U.S. recently lifted steel and aluminum tariffs on Canada that had threatened to sink the arrangement, which was signed in November with the goal of replacing the North American Free Trade Agreement.

TRUMP ORDERS ASYLUM OVERHAUL, CITING STATS SHOWING MOST CLAIMS ARE FRAUDULENT OR UNFOUNDED

The news of the tariff came hours after Politico reported that an internal plan under consideration at the Department of Homeland Security effectively would block Central American migrants from bringing asylum claims, by prohibiting claims from applicants who resided in a country other than their own before seeking entry to the United States.

Arrests along the southern border have skyrocketed in recent months, with border agents making more than 100,000 arrests or denials of entry in March, a 12-year high. Immigration courts that process asylum claims currently have faced a backlog of more than 800,000 cases and asylum applicants increasingly have been staying in the U.S. even after their claims for asylum have been denied.

More than 4,000 individuals have been apprehended at the border with children who are not their own in recent months, administration officials tell Fox News.

And, Customs and Border Protection said it apprehended or turned away over 109,000 migrants attempting to cross the border in April, the second month in a row the number has topped 100,000.

In a dramatic moment, more than 1,000 illegal immigrants were apprehended by border agents near the U.S.-Mexico border early Wednesday -- the largest ever group of migrants ever apprehended at a single time, sources told Fox News on Thursday. The group of 1,036 illegal immigrants found in the El Paso sector included migrants from Guatemala, El Salvador and Honduras, according to sources.

Trump tweeted a video of the episode on Thursday, with the note: “Democrats need to stand by our incredible Border Patrol and finally fix the loopholes at our Border!”

CLICK HERE TO GET THE FOX NEWS APP

A top Border Patrol official told lawmakers in April that authorities have apprehended more families illegally crossing the border between October 2018 and February of this year than during all of the 2018 fiscal year (Oct. 1, 2017-Sept. 30, 2018).

"Much media attention has focused on caravans coming across from Central America," Rio Grande Valley (RGV) Sector Chief Patrol Agent Rodolfo Karisch told the Senate Homeland Security Committee. "But, the fact is that RGV is receiving caravan-equivalent numbers every seven days."

Fox News' John Roberts and Edward Lawrence contributed to this report.

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https://www.foxnews.com/politics/trump-mexico-tariffs-escalating-illegal-immigrants-stop

2019-05-31 15:08:40Z
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Why Mexico is so important to the American auto industry - CNN

Every American auto factory depends on Mexican parts to build its cars or trucks. That's why President Donald Trump's threat to impose tariffs on Mexican imports of up to 25% by October is rattling the US auto industry. The tariffs could raise costs in the United States by tens of billions of dollars in the auto industry alone.

Car buyers would probably pay the cost of those tariffs.

"We believe the tariffs on vehicles would undoubtedly be passed on to consumers," wrote Emmanuel Rosner, auto analyst for Deutsche Bank. If the Trump administration enforces the full 25% tariff, it would increase the price of vehicles sold in the United States by an average of about $1,300, Rosner said.

That price increase would hurt demand for cars, perhaps cutting US auto production by as much as 3 million vehicles a year, an 18% drop from current levels, Rosner estimates.

If that happened, it would be the greatest blow to the US auto industry since the Great Recession sent the industry hurling toward near collapse 10 years ago.

The industry imported $59.4 billion in parts from Mexico last year, according to US government trade data. That includes parts used in factories and those sold in auto parts stores and repair shops.

Mexico is by far the largest foreign source of parts used by the industry. About 16% of all auto parts used by US assembly plants come from Mexico, according to an estimate from the Center for Automotive Research, a leading industry think tank.

Automakers can't easily shift to other suppliers to avoid using parts from Mexico. Mexican parts suppliers specialize in providing low-cost, labor-intensive components, which don't make economic sense to build elsewhere, said Kristin Dziczek, vice president of industry, labor and economics at the center.

For example, 70% of wire harnesses, the collection of wires that carry power throughout a vehicle, come from Mexico. Few if any wire harnesses are made in the United States. Much of the rest of the harnesses arrive at the US-Mexican border from countries south of Mexico.

"It's one of the first pieces you install when you're assembling a car," she said in April when Trump was threatening to close the border with Mexico altogether. Such a move would have shut the entire US auto industry within a week, she estimated.

"You can't build the whole car and slap the wire harness in later. This is a big critical part that shuts down the assembly line if you don't have it."

Finished cars and trucks also come into the United States from Mexico — about 2.7 million autos were imported from Mexico last year, worth $52 billion, according to the US Commerce Department. That's nearly a million more autos than came from Japan, the No. 2 source of auto imports.

A 25% tariff on all imports from Mexico would add about $28 billion a year to the cost of completed vehicles and parts.

Automakers are strong supporters of the new trade deal that the Trump administration negotiated with Mexico and Canada designed to replace NAFTA. That trade agreement, the US Mexico Canada Agreement (USMCA), would continue to allow most auto parts and vehicles to cross the border in both directions without tariffs. But it needs Congressional ratification before it takes effect.

The USMCA "relies on duty-free access to be successful. The imposition of tariffs against Mexico will undermine its positive impact and would impose significant cost on the US auto industry," said Matt Blunt, president of the American Automotive Policy Council, an industry group representing GM, Ford and Fiat Chrysler.

The US auto industry is already struggling with increased costs because of the Trump administration's tariffs on steel and aluminum. Both General Motors (GM) and Ford (F) have estimated that rising commodity prices from those tariffs have raised their costs by more than $1 billion each.

The entire industry has been trying to cut costs to free up cash for the expensive research and development challenge of developing the next generation of electric and self-driving cars. That is the reason GM cited for its plans to close four US factories this year.

That means automakers probably wouldn't assume the cost of the tariffs. Instead, they would pass them onto consumers. That could hurt American auto sales and cost additional jobs in the United States. Last year, GM warned that a proposal to put tariffs on all cars and auto parts imports from around the world would lead it and other automakers to cut US jobs.

Costs would rise even further if Mexico responds by imposing tariffs of its own on American goods. That would be a double blow to the US auto industry, because Mexico is a major market for both its cars and its parts.

Mexico bought 140,600 cars from the US last year, about 8% of all car exports, making it the fourth largest market behind Canada, China and Germany, according to the US Commerce Department. Those cars cost $3.3 billion.

More importantly, US parts makers shipped another $32.5 billion worth of parts to Mexico, mostly to use in Mexican auto plants.

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https://www.cnn.com/2019/05/31/business/mexico-tariffs-auto-industry/index.html

2019-05-31 14:52:00Z
52780305674640

Trump announces escalating tariffs against Mexico, starting at 5 percent, until illegal immigrants 'STOP' - Fox News

President Trump on Thursday abruptly announced a new 5 percent tariff on Mexico beginning in early June, saying the levy will "gradually increase" until the ongoing illegal immigration surge at the southern border is "remedied" and illegal migrants "STOP."

"On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP," Trump wrote. "The Tariff will gradually increase until the Illegal Immigration problem is remedied, ... ..at which time the Tariffs will be removed. Details from the White House to follow."

Fox News is told the tariff on all goods by land, sea, and air from Mexico will hike to 10 percent on July 1 -- and potentially increase substantially from there.

"If Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019," Trump said in a statement released later by the White House on Thursday. "Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory."

The statement added: "Thousands of innocent lives are taken every year as a result of this lawless chaos.  It must end NOW! ... Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States."

Specifically, White House sources told Fox News that Mexico would need to step up security efforts on the border, target transnational smugglers, crack down on illicit bus lines and align with the U.S. on a workable asylum policy. Mexico could use certain so-called choke points on the southern border to curb illegal migration sharply, according to the sources.

The Washington Post reported earlier in the day that the Trump administration was considering the move, and that it had broad support in the White House -- although some aides reportedly tried to talk Trump out of it.

“We are going to do something very dramatic on the border because people are coming into our country," Trump told reporters earlier Thursday.

The International Emergency Economic Powers Act of 1977 permits tariffs to be levied by the executive in the event of a national emergency originating from a foreign source. Trump said he was invoking the powers in the law and would use his "sole discretion" to determine whether Mexico had taken sufficient action.

"If Mexico does not take decisive measures, it will come at a significant price," Trump concluded in his statement.

The situation could complicate the legislative passage of the United States-Mexico-Canada Agreement (USMCA), sent to Congress by the White House on Thursday, which has aimed broadly to limit tariffs among the three countries.

However, the White House told Fox News it saw the matters as entirely distinct and did not anticipate complications for the USMCA.

Migrants seeking asylum in the United States lining up for meals provided by volunteers near the international bridge in Matamoros, Mexico. (AP Photo/Eric Gay, File)

Vice President Mike Pence was in the Canadian capital of Ottawa on Thursday to build support for the USMCA. The U.S. recently lifted steel and aluminum tariffs on Canada that had threatened to sink the arrangement, which was signed in November with the goal of replacing the North American Free Trade Agreement.

TRUMP ORDERS ASYLUM OVERHAUL, CITING STATS SHOWING MOST CLAIMS ARE FRAUDULENT OR UNFOUNDED

The news of the tariff came hours after Politico reported that an internal plan under consideration at the Department of Homeland Security effectively would block Central American migrants from bringing asylum claims, by prohibiting claims from applicants who resided in a country other than their own before seeking entry to the United States.

Arrests along the southern border have skyrocketed in recent months, with border agents making more than 100,000 arrests or denials of entry in March, a 12-year high. Immigration courts that process asylum claims currently have faced a backlog of more than 800,000 cases and asylum applicants increasingly have been staying in the U.S. even after their claims for asylum have been denied.

More than 4,000 individuals have been apprehended at the border with children who are not their own in recent months, administration officials tell Fox News.

And, Customs and Border Protection said it apprehended or turned away over 109,000 migrants attempting to cross the border in April, the second month in a row the number has topped 100,000.

In a dramatic moment, more than 1,000 illegal immigrants were apprehended by border agents near the U.S.-Mexico border early Wednesday -- the largest ever group of migrants ever apprehended at a single time, sources told Fox News on Thursday. The group of 1,036 illegal immigrants found in the El Paso sector included migrants from Guatemala, El Salvador and Honduras, according to sources.

Trump tweeted a video of the episode on Thursday, with the note: “Democrats need to stand by our incredible Border Patrol and finally fix the loopholes at our Border!”

CLICK HERE TO GET THE FOX NEWS APP

A top Border Patrol official told lawmakers in April that authorities have apprehended more families illegally crossing the border between October 2018 and February of this year than during all of the 2018 fiscal year (Oct. 1, 2017-Sept. 30, 2018).

"Much media attention has focused on caravans coming across from Central America," Rio Grande Valley (RGV) Sector Chief Patrol Agent Rodolfo Karisch told the Senate Homeland Security Committee. "But, the fact is that RGV is receiving caravan-equivalent numbers every seven days."

Fox News' John Roberts and Edward Lawrence contributed to this report.

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https://www.foxnews.com/politics/trump-mexico-tariffs-escalating-illegal-immigrants-stop

2019-05-31 14:15:06Z
52780305674640

Why Mexico is so important to the American auto industry - CNN

Every American auto factory depends on Mexican parts to build its cars or trucks. That's why President Donald Trump's threat to impose tariffs on Mexican imports of up to 25% by October is rattling the US auto industry. The tariffs could raise costs in the United States by tens of billions of dollars in the auto industry alone.

Car buyers would probably pay the cost of those tariffs.

"We believe the tariffs on vehicles would undoubtedly be passed on to consumers, which would raise the price of vehicles sold in the US by an average of about $1,300," wrote Emmanuel Rosner, auto analyst for Deutsche Bank.

That price increase would hurt demand for cars, perhaps cutting US auto production by as much as 3 million vehicles a year, an 18% drop from current levels, Rosner estimates.

If that happened, it would be the greatest blow to the US auto industry since the Great Recession sent the industry hurling toward near collapse 10 years ago.

The industry imported $59.4 billion in parts from Mexico last year, according to US government trade data. That includes parts used in factories and those sold in auto parts stores and repair shops.

Mexico is by far the largest foreign source of parts used by the industry. About 16% of all auto parts used by US assembly plants come from Mexico, according to an estimate from the Center for Automotive Research, a leading industry think tank.

Automakers can't easily shift to other suppliers to avoid using parts from Mexico. Mexican parts suppliers specialize in providing low-cost, labor-intensive components, which don't make economic sense to build elsewhere, said Kristin Dziczek, vice president of industry, labor and economics at the center.

For example, 70% of wire harnesses, the collection of wires that carry power throughout a vehicle, come from Mexico. Few if any wire harnesses are made in the United States. Much of the rest of the harnesses arrive at the US-Mexican border from countries south of Mexico.

"It's one of the first pieces you install when you're assembling a car," she said in April when Trump was threatening to close the border with Mexico altogether. Such a move would have shut the entire US auto industry within a week, she estimated.

"You can't build the whole car and slap the wire harness in later. This is a big critical part that shuts down the assembly line if you don't have it."

Finished cars and trucks also come into the United States from Mexico — about 2.7 million autos were imported from Mexico last year, worth $52 billion, according to the US Commerce Department. That's nearly a million more autos than came from Japan, the No. 2 source of auto imports.

A 25% tariff on all imports from Mexico would add about $28 billion a year to the cost of completed vehicles and parts.

Automakers are strong supporters of the new trade deal that the Trump administration negotiated with Mexico and Canada designed to replace NAFTA. That trade agreement, the US Mexico Canada Agreement (USMCA), would continue to allow most auto parts and vehicles to cross the border in both directions without tariffs. But it needs Congressional ratification before it takes effect.

The USMCA "relies on duty-free access to be successful. The imposition of tariffs against Mexico will undermine its positive impact and would impose significant cost on the US auto industry," said Matt Blunt, president of the American Automotive Policy Council, an industry group representing GM, Ford and Fiat Chrysler.

The US auto industry is already struggling with increased costs because of the Trump administration's tariffs on steel and aluminum. Both General Motors (GM) and Ford (F) have estimated that rising commodity prices from those tariffs have raised their costs by more than $1 billion each.

The entire industry has been trying to cut costs to free up cash for the expensive research and development challenge of developing the next generation of electric and self-driving cars. That is the reason GM cited for its plans to close four US factories this year.

That means automakers probably wouldn't assume the cost of the tariffs. Instead, they would pass them onto consumers. That could hurt American auto sales and cost additional jobs in the United States. Last year, GM warned that a proposal to put tariffs on all cars and auto parts imports from around the world would lead it and other automakers to cut US jobs.

Costs would rise even further if Mexico responds by imposing tariffs of its own on American goods. That would be a double blow to the US auto industry, because Mexico is a major market for both its cars and its parts.

Mexico bought 140,600 cars from the US last year, about 8% of all car exports, making it the fourth largest market behind Canada, China and Germany, according to the US Commerce Department. Those cars cost $3.3 billion.

More importantly, US parts makers shipped another $32.5 billion worth of parts to Mexico, mostly to use in Mexican auto plants.

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https://www.cnn.com/2019/05/31/business/mexico-tariffs-auto-industry/index.html

2019-05-31 13:33:00Z
52780305674640

China threatens to blacklist foreign companies after Huawei ban - CNN

The Chinese government is working to establish an "unreliable entity list" which would include foreign companies, individuals and organizations, according to a statement Friday from China's Commerce Ministry.

Companies that violate market rules will be added to the list, according to the statement. Other targets include firms that block supplies to Chinese companies for "non-commercial reasons" or otherwise damage their interests.

The exact details of the plan will be announced soon, the statement added.

The move to establish a blacklist comes after the United States hit Huawei with an export ban, effectively barring US companies from doing business with the smartphone and telecom equipment maker.

The Trump administration claims that Huawei equipment can be used by China for spying. Huawei has repeatedly denied that it poses a risk, saying the restrictions are an attempt to put it out of business.

Huawei fight

The US campaign against Huawei, one of China's most powerful tech companies, reached new heights earlier this month when the Trump administration added it to a list of companies said to undermine American interests.

That forced crucial suppliers like Google (GOOG) and ARM Holdings to cut ties with the Chinese company, while top carriers in the United Kingdom and Japan delayed the launch of Huawei smartphones.

For Huawei, which had aimed to become the top smartphone brand globally by the end of 2020, the ban could pose an existential threat.

Huawei bought $70 billion worth of components and parts last year from 13,000 suppliers. Of that, about $11 billion was spent on products from US businesses including Qualcomm (QCOM), Broadcom (AVGO) and Microsoft (MSFT).

Analysts had predicted that China could target US businesses as a result of the Huawei ban. Trust between the United States and China is running low as new rounds of tit-for-tat tariffs go into effect.

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https://www.cnn.com/2019/05/31/business/china-entity-list-huawei/index.html

2019-05-31 12:40:00Z
52780306786161

China threatens to blacklist foreign companies after Huawei ban - CNN

The Chinese government is working to establish an "unreliable entity list" which would include foreign companies, individuals and organizations, according to a statement Friday from China's Commerce Ministry.

Companies that violate market rules will be added to the list, according to the statement. Other targets include firms that block supplies to Chinese companies for "non-commercial reasons" or otherwise damage their interests.

The exact details of the plan will be announced soon, the statement added.

The move to establish a blacklist comes after the United States hit Huawei with an export ban, effectively barring US companies from doing business with the smartphone and telecom equipment maker.

The Trump administration claims that Huawei equipment can be used by China for spying. Huawei has repeatedly denied that it poses a risk, saying the restrictions are an attempt to put it out of business.

Huawei fight

The US campaign against Huawei, one of China's most powerful tech companies, reached new heights earlier this month when the Trump administration added it to a list of companies said to undermine American interests.

That forced crucial suppliers like Google (GOOG) and ARM Holdings to cut ties with the Chinese company, while top carriers in the United Kingdom and Japan delayed the launch of Huawei smartphones.

For Huawei, which had aimed to become the top smartphone brand globally by the end of 2020, the ban could pose an existential threat.

Huawei bought $70 billion worth of components and parts last year from 13,000 suppliers. Of that, about $11 billion was spent on products from US businesses including Qualcomm (QCOM), Broadcom (AVGO) and Microsoft (MSFT).

Analysts had predicted that China could target US businesses as a result of the Huawei ban. Trust between the United States and China is running low as new rounds of tit-for-tat tariffs go into effect.

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https://www.cnn.com/2019/05/31/business/china-entity-list-huawei/index.html

2019-05-31 11:43:00Z
52780306786161