Peso, Futures Rally After Mexico Agrees To Defend Its Southern Border, Talks Continue
Update (1930ET): While Mexico’s Foreign Minister Marcelo Ebrard confirmed no deal had been reached, he confirmed that Mexico has proposed to send about 6,000 national guard troops to its southern border with Guatemala to help stem migration.
“Tomorrow we are going to maintain these conversations, we don’t have yet an agreement but we are advancing in order to reach an agreement,” Ebrard says
So, for all those establishment types so full of sound and fury at Trump’s tariff plan, it would appear it is working.
The reaction in the peso and equity markets was instant…
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Update (1700ET): Vice President Mike Pence has confirmed that no deal with Mexico has been reached, noting that while talks are continuing, the Trump administration has asked Mexico to “significantly more,” and “at this point, tariffs will be imposed on Monday.”
Pence said Mexican delegates’ proposals to avoid the 5% tariff during Wednesday’s meeting were “not nearly enough,” but added that he was “encouraged” by today’s negotiations.
He said the next step would be a matter for Trump to consider after he’s briefed on their new proposals pic.twitter.com/tdfThijkAj
— POLITICO (@politico) June 6, 2019
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White House spokeswoman Sarah Sanders says in statement that the administration’s “position has on a Monday deadline has not changed. We are still moving forward with tariffs at this time.”
This follows reports from Bloomberg claiming that the Trump administration was considering delays in implementing the tariffs.
While the moves are not large, they erase the late day exuberance (for now)…
Until the next headline.