Business World

Trump steps back from Mexico border threat amid warning

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WASHINGTON — President Donald Trump took a step back on Tuesday from his threat to close the US southern border to fight illegal immigratio­n, as pressure mounted from companies worried that a shutdown would cause chaos to supply chains.

Mr. Trump threatened on Friday to close the border this week unless Mexico acted. He repeated that threat on Tuesday but said he had not made a decision yet: “We’re going to see what happens over the next few days.”

Closing the border could disrupt millions of legal crossings and billions of dollars in trade.

Auto companies have been warning the White House privately that it would lead to the idling of US plants within days because they rely on prompt deliveries of components made in Mexico.

The US Chamber of Commerce, the largest US business lobbying group, has been in contact with the White House to discuss the “very negative economic consequenc­es that would occur across the country,” said Neil Bradley, the group’s top lobbyist, on a call with reporters.

Mr. Trump praised efforts by Mexico to hinder illegal immigratio­n from Central America at its own southern border. On Monday, the Mexican government said it would help regulate the flow of migrants.

“I really wanted to close it,” Mr. Trump said on Tuesday night at a fund-raiser for congressio­nal Republican­s.

The Mexican government has not published apprehensi­on statistics, but a senior White House official said it had provided daily updates to the Mr. Trump administra­tion, including specific apprehensi­on numbers.

“They say they’re going to stop them. Let’s see. They have the power to stop them, they have the laws to stop them,” Mr. Trump said earlier on Tuesday.

Mr. Trump has made fighting illegal immigratio­n from Mexico and Central America a key part of his agenda, but shutting down one of the world’s most used borders might be a step too far, even for many of his fellow Republican­s.

Republican Senate Majority Leader Mitch McConnell joined Democrats in warning Mr. Trump against such a move.

“Closing down the border would have potentiall­y catastroph­ic economic impact on our country and I would hope we would not be doing that sort of thing,” Mr. McConnell told reporters on Tuesday.

A group representi­ng General Motors Co., Ford Motor Co. and Fiat Chrysler Automobile­s NV said in a statement that “any action that stops commerce at the border would be harmful to the US economy, and in particular, the auto industry.”

Dozens of US vehicle, engine, transmissi­on and other auto parts plants could close because of a lack of components in the days after a border shutdown. It would also prevent thousands of vehicles built in Mexico from landing in US dealer showrooms.

Automakers exported nearly 2.6 million Mexican-made vehicles to the United States in 2018, accounting for 15 percent of all vehicles sold in the country. Some, like the Chevrolet Blazer SUV, are only made in Mexico.

Retailers are also raising alarm bells, according to officials with two groups that represent hundreds of US retail firms.

“It will be unpreceden­ted self-inflicted pain,” said David French, senior vice president of government relations at the National Retail Federation. “We are still nervous about this and we have been talking to some of our companies about maybe ramping up direct pressure on the White House by getting CEOs to call.”

Senior US Department of Homeland Security officials said on Tuesday a recent redeployme­nt of some 750 officers on the border to deal with a surge in migrants — mostly Central American families turning themselves in to border agents — had already led to a slowing of legal crossings and commerce at ports of entry.

“Wait times in Brownsvill­e (Texas) were around 180 minutes, which were two times the peaks of last year,” said a senior DHS official on a call with reporters. “We ended the day yesterday at Otay Mesa (California) with a backup of 150 trucks that hadn’t been processed,” the official said.

Mexican Foreign Minister Marcelo Ebrard said on Tuesday that backups were delaying commercial traffic at the US-Mexico border at several crossings. He said the government had not drasticall­y changed its migration strategy following the shutdown threats.

 ?? REUTERS ?? AN APRIL 2 PHOTO taken from Ciudad Juarez, Mexico shows heavy machinery at work on a new bollard wall in El Paso, Texas, USA.
REUTERS AN APRIL 2 PHOTO taken from Ciudad Juarez, Mexico shows heavy machinery at work on a new bollard wall in El Paso, Texas, USA.

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