Mexico and U.S. fail to reach agreement on day 1 of negotiations

Mexican officials failed to fend off impending tariffs during a meeting with White House officials in Washington, D.C. on Wednesday, reports CNBC.

What's next: President Trump — who is currently in the U.K. — said progress was made, but not enough. The talks are set to continue on Thursday, but if no agreement is reached, tariffs are expected to take effect on June 10.

Context: Trump recently threatened to impose a 5% tariff that will gradually increase until Mexico can slow the flow of migrants crossing into the U.S. along the Southern border. The tariffs have been characterized as the "largest tax hike" in America's history.

• Earlier on Thursday, White House trade advisor Peter Navarro said tariffs “may not have to go into effect at all” if Mexico was willing to make certain compromises during the meetings, per CNBC.

Go deeper: Behind the scenes of Trump's Mexico tariff surprise