Trump trade adviser: Mexican tariffs ‘may not have to go into effect’

The top White House trade adviser said Wednesday that President Trump may not need to impose tariffs on Mexican goods because the threat of import taxes alone caught “the Mexicans’ attention.”

Peter Navarro said in a Wednesday interview with CNN that Trump’s proposed 5 percent tariff on Mexican goods may be scrapped if the Mexican government commits to stopping a greater number of migrants from entering the U.S.

{mosads}Navarro’s comments came hours before top Mexican officials met with Vice President Pence, Secretary of State Mike Pompeo and U.S. Trade Representative Robert Lighthizer in search of a deal to avoid the tariffs.

“We believe that these tariffs may not have to go into effect precisely because we have the Mexicans’ attention,” Navarro said on “CNN Newsroom.”

“I think let’s stay calm and look at the chessboard here.”

Trump announced last week that he would impose a 5 percent tariff on all goods from Mexico if the country does not accomplish the improbable task of stopping all migration and drug trafficking into the U.S. over the southern border.

The president said the tariffs would go into effect on June 10 and increase by 5 percent each month, with a maximum rate of 25 percent by October.

Trump’s proposed tariffs were opposed by several of his top aides, supported only by Navarro and Stephen Miller, the president’s top immigration adviser. The tariff threat also inflamed deep divisions among Republican lawmakers over Trump’s trade agenda, sparking a potential rebellion from the Senate GOP conference.

Trump said Tuesday that he would likely move forward with the tariffs anyway, and said lawmakers would be “foolish” to try to stop the import taxes.

But Republican senators warned White House officials Tuesday afternoon that Trump should not impose tariffs on all Mexican imports, and they could block the tariffs with a disapproval resolution. Even so, the resolution would likely fall to a Trump veto without support from roughly 50 House Republicans, who rarely break with the president.

“End of the day, we should support the president so we can get an agreement so we don’t have tariffs. Them talking about not supporting him undercuts his ability to do that,” said House Minority Leader Kevin McCarthy (R-Calif.) on Wednesday.

Tariffs on Mexican goods would likely lead to higher prices for food, gasoline, automobiles and hundreds of other essential consumer products assembled in or with parts from Mexico. Economists have warned that the full cost of Trump’s proposed tariffs on Mexico and China could slow the U.S. into a recession.