Trump defies close advisers in deciding to threaten Mexico with disruptive tariffs

The tactic sowed disruption on multiple fronts Friday as top Mexican officials rushed to Washington to defuse the threat, the stock market tumbled on the news and administration officials offered little explanation of how increasing the prices of goods from Mexico would stop illegal immigration at the border, a goal that has eluded multiple administrations.

He’s trying to solve a humanitarian situation by creating economic chaos,” said Congressional Hispanic Caucus Chairman Joaquin Castro (D-Tex.), whose state would be devastated in any trade standoff with Mexico. “He doesn’t have a coherent strategy for how to deal with any of this stuff.”

On Friday, Trump defended his threat, insisting that Mexico “has taken advantage of the United States for decades.”

“Mexico makes a FORTUNE from the U.S., have for decades, they can easily fix this problem,” Trump tweeted as the pushback from Republican lawmakers and the business lobby continued to pour in. “Time for them to finally do what must be done!”

Under the White House threat, the United States would implement a 5 percent tariff on all Mexican imports starting June 10 if illegal migration hadn’t stopped by then. That figure would rise to a 10 percent tariff on July 1 and then an additional 5 percent on the first day of each month for three months, maxing out at 25 percent on Mexican products until the country “substantially stops the illegal inflow of aliens coming through its territory.”

In public, Trump administration officials sought to defend the plan by pointing to the rising number of asylum seekers arriving at the southern border — a trend that shows no signs of reversing. The Department of Homeland Security projects that the month of May is on track to record the highest number of border apprehensions in more than a dozen years.

“Let me [be] clear, the current situation is risking the lives of children every day,” acting homeland security secretary Kevin McAleenan said, calling for Mexico to take “significant action” to secure its own southern border.

But privately, top officials were caught in an administration-wide scramble as aides continued to have meetings with Trump on Friday to try to persuade him to reverse course, two officials said.

The idea of enacting unilateral tariffs against Mexico had surfaced repeatedly in internal discussions — and seriously enough that the White House Counsel’s Office had already written a draft of the plan when Trump brought up the proposal again Wednesday, officials said. White House lawyers had been studying their legal options since Trump threatened to shut down the entire U.S.-Mexico border before backing down.

The arguments against the tariffs — voiced internally by Kushner, Lighthizer and Treasury Secretary Steven Mnuchin — did little to dissuade Trump, and Kushner was asked to call Mexican officials to inform them of the impending threat.

After the Wednesday night meeting in the Oval Office, the tariff order was finalized by the White House counsel and the office of Stephen Miller, a senior White House adviser and immigration hard-liner who oversees domestic policy.

But Thursday morning, it was unclear whether Trump would actually follow through, even as he hinted at a “big league” announcement on immigration before leaving Washington for an Air Force Academy address in Colorado. Other White House offices not included in the initial tariff discussions — such as the legislative affairs division and the office of the public liaison — learned as aides came into work Thursday that Trump was considering such an announcement.

By the time a cadre of senior White House aides assembled for a 4:30 p.m. meeting Thursday, the decision to announce the tariffs was essentially finalized, even though it had appeared to be in flux for much of the day. Trump called in from Air Force One as he returned from Colorado and told the staff that he wanted the announcement put out immediately.

Vice President Pencetraveling in Ottawa to meet with Canadian Prime Minister Justin Trudeau and promote the pending trade agreement — separately phoned congressional Republican leaders to inform them of the imminent announcement. The top Republican on the House Ways and Means Committee, Rep. Kevin Brady (Tex.), was told in advance, but Senate Finance Committee Chairman Charles E. Grassley (Iowa), who leads a powerful panel overseeing trade policy, was not, according to their aides.

“The president didn’t blindside his own party,” White House press secretary Sarah Sanders said Friday. “If Republicans weren’t aware, then they haven’t been paying attention.”

From the driveway of the White House, Sanders continued, “Anybody in this country — or frankly, in the world — that says they’re surprised by this has been living under a rock and not paying attention.”

Nonetheless, Trump told people around him that he was well aware that many Republican senators would not like the tariff threat. Indeed, White House legislative staffers were flooded with calls Thursday night, although they referred all the inquiries to the counsel’s office, according to two senior White House aides.

The objections were particularly pointed Friday from proponents of free trade such as Sen. Patrick J. Toomey (R-Pa.), but they also flooded in from border-state Republicans who have been reliable Trump allies but also are on the ballot in 2020.

“While I support the president’s intention of stopping unchecked illegal immigration, I do not support these types of tariffs, which will harm our economy and be passed onto Arizona small businesses and families,” Sen. Martha McSally (R-Ariz.) said in a statement.

A spokesman for Sen. John Cornyn (R-Tex.) conveyed similar sentiments: “Senator Cornyn supports the President’s commitment to securing our border, but he opposes this across-the-board tariff which will disproportionately hurt Texas.”

House Democrats began considering legislative remedies aimed at halting imposition of the tariffs, although one leadership aide said they needed more information from the administration to determine their options.

Mick Mulvaney, the acting White House chief of staff, and economic staffers fielded a range of calls Friday from business leaders. In response, the White House told corporate officials to put pressure on Mexico, according to a senior administration official.

Meanwhile, the Mexican government scrambled to stave off the looming taxes, announcing that its delegation and U.S. officials will meet in Washington on Wednesday, with the sides led by Mexican Foreign Minister Marcelo Ebrard and Secretary of State Mike Pompeo.

“Trump loves tariffs. That’s fine, but this needs to end in policy wins,” said Republican donor Dan Eberhart. “The short-term pain needs to produce a long-term gain for America.”

Trump’s Top Trade Adviser Opposed Mexican Tariffs

U.S. Trade Representative Robert Lighthizer argued plan could jeopardize North American trade accord

President Trump’s top trade adviser opposed the White House’s threat to impose escalating tariffs on Mexico, arguing that the plan could jeopardize a pending North American trade accord, people familiar with the situation said.

U.S. Trade Representative Robert Lighthizer has argued that tariffs on Mexico further cloud prospects for ratification of the U.S.-Mexico-Canada Agreement, the proposed successor to Nafta that is already facing significant hurdles in the Democrat-controlled House, these people said.

“Lighthizer is not happy,” one of the people, an administration official, said. A spokesman for Mr. Lighthizer declined to comment.

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

Mr. Trump decided to threaten tariffs as he became increasingly frustrated with the numbers of undocumented immigrants crossing into the U.S. through the Mexican border, the people said.

“This is something he’s talked about for a long time but people always talked him out of it,” said one of the people, a former administration official.

In recent days the president lost his patience, according to one of the people who spoke about Mr. Lighthizer’s concerns and a senior administration official. He had listened to his advisers for months, who told him not to take action against President Andrés Manuel López Obrador’s new administration while it was forming its government, they said.

He got tired of waiting for the new government to settle in,” one of the people familiar with the situation said.

The last time he did tariffs on Mexico, Mexico responded, so he wanted to try again in the context of border security,” the senior administration official said.

There was a meeting with the president’s trade team on Wednesday and again on Thursday, when the president phoned in from Air Force One, according to one of the people.

“In both meetings, the president made very clear that he wants to do this,” one of the people said.

U.S. officials, including Mr. Lighthizer, have stressed to Congress the importance of enacting USMCA, meant to replace the North American Free Trade Agreement, in part to show other trading partners that high-pressure talks with Mr. Trump can lead to a win for all sides.

One of the officials noted that Mr. Lighthizer has a particularly good working relationship with House Speaker Nancy Pelosi, and behind closed doors, he has managed to leverage that relationship to make progress in advancing the USMCA through Congress. Some in the administration now fear that the president’s latest move may derail any progress Mr. Lighthizer has made, the people familiar with the situation said.

On Thursday, Mr. Trump threatened to impose 5% tariffs on nearly $360 billion in goods imported from Mexico starting June 10 unless Mexico takes steps to stem the flow of immigrants across the border. If no action is taken, tariffs would eventually go up to 25% by Oct. 1.

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