Trump steps back from Mexico border threat as companies warn of economic fallout
President Donald Trump took a step back on Tuesday from his threat to close the U.S. southern border to fight illegal immigration, as pressure mounted from companies worried that a shutdown would cause chaos to supply chains.
Trump Friday threatened 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."
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Trump threatens closure of U.S.-Mexico border next week to stem asylum surge
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 U.S. plants within days because they rely on prompt deliveries of components made in Mexico.
The U.S. Chamber of Commerce, the largest U.S. 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.
U.S. President Donald Trump speaks during a campaign rally at El Paso County Coliseum in El Paso, Texas, U.S., February 11, 2019. /VCG Photo
Trump praised efforts by Mexico to hinder illegal immigration from Central America at its own southern border. "I really wanted to close it," Trump said on Tuesday night at a fundraiser for congressional Republicans.
On Monday, the Mexican government said it would help regulate the flow of migrants. The Mexican government has not published apprehension statistics, but a senior White House official said it had provided daily updates to the Trump administration, including specific apprehension numbers.
A woman poses for a photo on the border barrier, before climbing back down, on the U.S.-Mexico border barrier on the beach, Tijuana, Mexico, March 30, 2019. /VCG Photo
"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," Trump said earlier Tuesday.
'Catastrophic' to the economy
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 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," McConnell told reporters on Tuesday.
Men walk on the Mexican side of the U.S.-Mexico border barrier (TOP) after sunrise in Tijuana, Mexico March 30, 2019. /VCG Photo
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 U.S. economy, and in particular, the auto industry."
Retailers are also raising alarm bells, according to officials with two groups that represent hundreds of U.S. 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," said French.
(Cover: U.S. President Donald Trump talks to reporters in Washington, DC, April 2, 2019. /VCG Photo)