Pence Says Mexico Tariffs Still Set for Monday as Talks Continue

Vice President Mike Pence said the U.S. still plans to impose tariffs on Mexico next week over the flow of undocumented migrants from Central America, but talks between the two nations continue.

“At this point the tariffs are going to be imposed on Monday,” Pence said Thursday in Pennsylvania. Pence, who took part in negotiations Wednesday, said he would talk to President Donald Trump later Thursday and over the weekend about Mexico’s proposals, including developments during a second day of talks Thursday.

“I’m encouraged they came today with more but it will be a matter for the president to consider,” Pence added.

The U.S. is considering delaying the tariffs as talks continue, according to people familiar with the matter. One U.S. official said the most likely outcome is still that a 5% tariff goes into effect. But the official said U.S. negotiators recognize that Mexico is taking the talks seriously and working quickly to address Trump’s concerns. If the 5% tariff is triggered but Mexico follows through on promises to crack down on migration, the duties could be short-lived, the official said.

Mexico has proposed to send about 6,000 national guard troops to its southern border with Guatemala to help stem migration as part of a deal to avert the tariffs, according to two people familiar with the matter.

Pence’s comments came after a meeting of U.S. and Mexican officials at the White House wrapped up Thursday afternoon. Mexico is pushing for more time to negotiate over concerns the two sides won’t be able to reach agreement on the steps Mexico would have to take to avert the tariffs, one person said. Trump has said the tariffs will be enacted on Monday.

U.S. stock indexes jumped to session highs on the news, while Mexico’s peso strengthened against the dollar.

Trump is traveling in Europe this week. Pence and Secretary of State Michael Pompeo took part in discussions with Mexican Foreign Minister Marcelo Ebrard on Wednesday, but neither was present at meetings Thursday.

Ebrard said earlier Thursday that there were unspecified “advances” after meeting with officials at the State Department.

A staff-level meeting at the White House on Thursday ended shortly before 3:30 p.m. Washington time, an administration official said. Those discussions didn’t include cabinet secretaries. No deal was expected to come from it.

The White House didn’t immediately respond to a request for comment.

While Trump said progress was made during Wednesday’s 90-minute meeting and that “something pretty dramatic could happen” in the coming days, he continued to hold out the threat that the U.S. will follow through with tariffs.

Mexico’s proposal to delay the implementation matches comments by top Republican lawmakers. Senate Majority Leader Mitch McConnell told administration officials that Trump should hold off on imposing tariffs on Mexico until the president can personally make his argument to Republicans in Congress, according to people briefed on the conversation.

“We’ve told Mexico the tariffs go on” if no deal is made, Trump told reporters in France, where he spoke at a commemoration of the 75th anniversary of D-Day. “They have to step up to the plate.”

Chart: All-Out Trade War Could Cost Global Economy $800 Billion

“If no agreement is reached, Tariffs at the 5% level will begin on Monday, with monthly increases as per schedule,” Trump tweeted Wednesday. “The higher the Tariffs go, the higher the number of companies that will move back to the USA!”

Trump last month announced a 5% tariff on all imports from Mexico unless the country takes “decisive measures” -- as judged by his administration -- to stem migrants entering the U.S. He said the tariffs would begin June 10 and scale up incrementally until they reach 25% on Oct. 1. Mexico is the second largest source of U.S. imports after China.

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