Markets moving more positively as US-Mexico deal looms

Mexican and US officials held a second day of talks on trade and migration on Thursday (6 June), with markets rebounding on optimism a deal could be close.
calendar icon 7 June 2019
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National emergency?

The White House has drafted a document for Trump that would declare a new national emergency to implement the Mexican tariffs, according to a copy of the order seen by The Hill newspaper.

The head of the US House of Representatives Ways and Means Committee vowed to take steps to block such a move.

"If the president does declare a national emergency and attempt to put these tariffs into place, I will introduce a resolution of disapproval to stop his overreach," said the panel's chairman, Democrat Richard Neal.

Mexican officials have prepared a list of US products that may face retaliatory tariffs if talks do not end in agreement. The tariffs would target US products from agricultural and industrial states regarded as Trump's electoral base, a tactic China has also used with an eye toward the president's 2020 re-election bid.

US hog farmers fear Mexico could hit back on products like pork. Mexico bought about $1.5 billion worth of American hams and other pork products in 2017, making it the sector's top export market by volume.

"People are really scared," said Nick Giordano, vice president and counsel for global government affairs at the National Pork Producers Council. "This is generating a tremendous amount of uncertainty and potentially if this goes forward, it's going to be financial turmoil."

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