Importers and exporters based in Texas have so far avoided the harshest effects of the trade war sparked by President Donald Trump’s tariffs on imports from a host of countries, but they could be in for a rude awakening come Monday.
Mexico, Texas’ largest trading partner, has been largely exempt from tariffs due to a March agreement that allowed an estimated 85% to 90% of all Mexican goods to avoid the 25% tariff the Trump administration placed on its imports.
However, Trump earlier this month informed Mexico, two dozen other countries and the European Union that their exports will face an increase in the tariffs on their goods unless they quickly negotiate new trade deals with the U.S. Trump’s letter to Mexican President Claudia Sheinbaum Pardo promises to raise the rate against the country to 30% on Aug. 1 and makes no mention of extending the spring agreement exempting most Mexican imports.
“When we talk about th…