Top tech lobbying group calls Mexico tariffs 'potentially devastating'

Top tech lobbying group calls Mexico tariffs 'potentially devastating'
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The Consumer Technology Association (CTA), the largest tech lobbying association by member count, on Friday slammed President TrumpDonald John TrumpO'Rourke: Trump driving global, U.S. economy into recession Manchin: Trump has 'golden opportunity' on gun reforms Objections to Trump's new immigration rule wildly exaggerated MORE's new tariffs on Mexico, saying they are "potentially devastating" to the technology sector. 

CTA has been lobbying against Trump's tariff policies for months, warning that they could force tech companies to raise the price of their products or severely harm their bottom lines.

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On Friday, CTA argued that Mexico is vital to the consumer technology industry and any retaliatory tariffs could ravage the trade partnership. 

"Mexico is not only one of our top trading partners, it's the number one export market for American consumer technology sector products," Gary Shapiro, CTA's president and CEO, said in a statement. 

The top export markets for U.S. consumer technology products include Mexico, Canada, Hong Kong, and China. Mexico has emerged as the biggest trading partner of the U.S., replacing China.  

"'If Mexico reciprocates with tariffs of its own, our country's employers and workers will end up paying twice over for the administration's misguided trade policies," Shapiro added.

Trump late on Thursday announced he would impose tariffs on Mexico to pressure the country into staving off the flow of migrants into the U.S. through the southern border. The president said the U.S. will impose a 5 percent tariff on "all goods" coming into the U.S. from Mexico starting June 10. 

The White House distributed a statement saying that tariffs would increase by 5 percent each month until they reach 25 percent “unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory." 

The move came as the administration has been ramping up pressure on Congress to pass the UMSCA, a revised trade pact with Canada and Mexico.  

CTA applauded the Trump administration's moves on the Canada-Mexico-U.S. trade pact but said it had "backslid" with the Mexico tariffs announcement.

"The administration made important progress yesterday by alerting Congress that the new NAFTA (USMCA) may come soon - but almost immediately backslid by slapping tariffs on Mexico, a valuable neighbor," Shapiro said. "This is potentially devastating to American small businesses and all the people they employ."

Major tech lobbying groups have been mobilizing aggressively against Trump's escalating trade war with China, a top tech trade partner, over the past year as well.

According to industry estimates, the tariffs already in place have cost the U.S. tech sector about $1 billion more per month since October.