Trump's Mexico Tariff Threat Rattles Markets
You might know ADP as the biggest name payroll, but that's just the beginning because ADP is transforming the way, great work gets done with HR talent time benefits and payroll informed by data and designed for people, that's ADP always designing for people. President Trump's threat to impose escalating. Tariffs on Mexico rattled markets, on Friday and threw into question the new trade agreement between the US Canada and Mexico. This makes any observer wonder whether or not this station is, is capable of making big trade deals or whether it actually, desires to make big trade deals. So it just induces, a huge amount of global uncertainty in that sense. Stocks and bonds fell around the world and here in the US the Dow fell more than three hundred points on Friday, marking its sixth straight week of declines and its longest losing streak since twenty eleven this is what's news from the Wall Street Journal. I'm Anne Marie for totally in New York before we get to our main story on tariffs here are some other top stories we're following today the US and South Korea are investigating a report from defectors that says North Korea executed several members of its negotiating team after February talks in Vietnam between President Trump. And North Korean leader. Kim Jong UN fell apart. The defectors say multiple North Korean diplomats were executed in March, and that others were demoted or purged. White House press secretary, Sarah Sanders told reporters quote, where monitoring the situation and continue to stay focused on our ultimate goal which is denuclearization. This may was among the worst on record for tornadoes in the United States. More than five hundred twisters were reported across the nation this month as part of storm systems, that also brought major flooding along with them in areas around the Missouri Mississippi and Arkansas rivers the Wall Street Journal's. Erin Aylward has more on the damage tornados were reported from California to New Jersey this month. But the majority of tornado activity was really concentrated in the central and south central US, and it's been pretty bad. I mean, seven people were killed at least seven people that we know of and major damage was reported in places like Jefferson City, Missouri. Kansas City, Kansas, and in Dayton, Ohio Dayton was actually pretty hard hit on Memorial Day, which will remember was the worst day of tornado activity so far this year. I was chatting with the sheriff in Montgomery County. That's where Dayton is located. He was. Telling me about that Memorial Day. Seven tornadoes were reported in his county alone and the storm that spawned them, according to him was pretty gnarly. He described essentially seeing a tornado and feel it. So the arrow away and then trying to navigate around bunches of down trees and power lines on streets that were lit only by flashes of lightning as deputies went door to door to warn people in all of this was happening at night. So made it an extra dangerous situation. Now that the storms have passed it's all about assessing the damage that's left behind the experts coming out to confirm tornado activity and, and rate, how, how intense these twisters were all of that, of course, will take time may of two thousand three was another record month for tornadoes in the US with five hundred forty two reported just that month the food and Drug administration is looking into the safety of food and few. Used with chemicals from the cannabis plant kind of Odile or CBD has become a popular ingredient in foods and drinks, even though many uses or still technically illegal under current FDA rules heme, which contain CBD had previously been on the drug enforcement administration's controlled substance list, and experts say, as a result, there's little research on it hemp, farmers are among the groups hoping to promote water use of CBD, the FDA held its first hearing on the safety and marketing of chemicals from the cannabis plant on Friday, which could eventually lead to new regulations. You might know ADP is the biggest name in payroll. But that's just the beginning because ADP is transforming the way great work gets done with HR talent time benefits and payroll informed by data and designed for people, that's ADP always designing for people. President Trump has threatened to impose escalating tariffs on Mexico starting at five percent next month. If the country doesn't take steps to stem the flow of illegal immigrants across the border. The president's top trade advisor, Robert lighthizer has reportedly opposed the idea over fears, it could up into trade agreement between the US Canada and Mexico. Joining me now, from Washington with the latest is Wall Street Journal reporter, Josh zoom Brune, Josh fair to say this came as something of a surprise on Thursday evening with President Trump announced his plan to impose escalating tariffs on Mexico via Twitter. Yeah. I mean this really came out of nowhere, and the main reason for that is because the administration had launched earlier in the day, a real charm offensive to try to get its trade deal. You know, the administration spent a year working, extremely hard to get this deal between the US Mexico and Canada replaced, the old NAFTA deal and just yesterday, the vice president was in Canada, with the prime minister Justin Trudeau. And they were talking about this deal and how important it is. And how they were how it had renewed momentum. And then later in the evening, completely kind of unexpectedly to president decided to announce that he was putting these new tariffs on, on Mexico, which puts the entire NAFTA deal in pretty serious jeopardy. So what do we know about what led the president to take these steps as we're reporting today behind the scenes? There has been some pushback about the president's plan to impose these tariffs with US Trade Representative Robert lighthizer fearing, it could jeopardize that agreement. Yeah, exactly what they used emergency. They used the emergency Powers Act, which allows the president to do this on the basis that there's a national emergency at the border, and I think by all accounts, the president did do this because of the concern about the number of migrants that are showing up at Mexico's border in the US administration's belief that Mexico isn't doing enough to stop these immigrants. Many of them are coming from Wadham all actually where there's a severe drought. Inner trying to get to the United States and then. The US thinks that the Mexican government isn't doing quite enough to stop it. The US is trying to portray. This is just a completely unrelated to trade action. You know, the president's acting chief of staff, Mick Mulvaney, made that point explicitly saying this isn't a trade action. This is about the immigration crisis at the border right now. But of course, you know, this is a trade action. It applies tariffs to three hundred and sixty billion dollars worth of trade becomes into the United States from Mexico every year. So they might have motivated this because of their concerns about what's going on, at the border, but this is certainly a very consequential consequential trade and economic action that they've launched here. Do we have any specific? Details about what exactly President Trump wants Mexico to do in terms of taking steps to stem illegal immigration. And what are we hearing from Mexico? Mexico is very concerned by this action, of course. And they sent their foreign minister and a delegation to Washington today to kind of start talks right away to the US to. Kind of let them know that the situation from their perspective in what they think they're doing about it. The, you know, a US basically hasn't said specifically, what it wants Mexico to, to do other than to kind of reduce the number of people that are showing up at the border. And this, of course, has been rattling markets, not just in the US, but also worldwide. Yeah, I mean, this is such a big trade action. I, I again, it's three hundred sixty billion dollars roughly of goods that come to the United States from Mexico every day. And a lot of these are goods that had previously avoided the trade War, I mean, almost seventy billion dollars of cars and trucks comes into the United States from Mexico each year. A lot of the main car manufacturers, including the American manufacturers, GM, and Ford have enormous operations in Mexico close to fifty billion dollars of car parts comes across the border every year. And a lot of that is stuff that goes back and forth, multiple times because because we've had this NAFTA deal, these companies GM and Ford. And the international automakers as well. You know it's not unusual at all for part to cross the border multiple times before it makes it into a finished car. And now every time that part crosses the border, it's going to get hit with the tariff again. So this is just tremendously disruptive to the car industry. And then the reason I think it's rattling markets, more generally is because it really raises questions about the ability of any country to make deals with the United States. I mean Mexico is a country that spent an entire year, negotiating a very careful trade agreement with the United States, and then they got hit by this tariff that could become giant over time. I mean this could become the biggest tariff action, the administration has taken, and so if your China or Japan or the European Union, and you're trying, you're considering making a deal with this administration. You have to kind of wrestle with the possibility that you could make a deal work really hard on it, and get everyone to agree to it. And then a few months later, the US would decide to hit you with tariffs, and so it calls into question the entire. Fire ability of this administration to, to make any deals. I mean they've yet to make a real big trade deal. And this kind of makes you wonder whether or not I think this makes any observer wonder whether or not this administration is, is capable of making big trade deals, or whether it actually, desires to make big trade deals. So it just induces, a huge amount of global uncertainty in that sense. That's the Wall Street Journal's Josh zoom. Brune with the latest on President Trump's plan to impose new tariffs on Mexico. Josh, thank you so much. Big so much for having me. And for the latest developments on this story. Please be sure to check back on our website w s j dot com. This spring marks the thirtieth anniversary of the military crackdown in Beijing's Tiananmen Square. Our video team spoke to rose Tang an artist and activist now, living in Brooklyn, who joined pro democracy protestors who occupied the square for two months. She said she and many others were willing to die for democracy. I was twenty in nineteen eighty nine. Imagine millions of people were out in the streets, including kindergarteners elementary school, students chanting slogans about democracy of press freedom. And the hunger strikers, were on hunger strike for weeks and the government did not respond an I thought that was a historical event. I couldn't afford to miss the Chinese military led a crackdown on protesters on June fourth nineteen Eighty-nine Tang says thirty years later, it remains a taboo topic in China and she feels she has to continue speaking out, I moved to the United States. From Hong Kong in two thousand and five I feel as a survivor cook can write and speak English very oil. It's my duty to keep telling the world what happened back then I'm an ordinary person, a small potato, but I won't shut up. I will just keep talking about it, raising the awareness of ten Nemann and other human rights abuses, in China and elsewhere. It's best slogan, the subway. If you see something, say something for our full coverage of the thirtieth anniversary of the military crackdown in TNN square, including this, video and interviews with survivors police, head to our website, WSJ dot com. That's what's news for this Friday afternoon. I'm Anne Marie for totally for the Wall Street Journal. Thanks for listening.