The Mexican government plans to travel to Washington, D.C. on Wednesday for an impromptu summit with the U.S. following President Trump's threat of aggressive, incremental tariffs on goods imported from Mexico, the Washington Post reports.
Details: On Friday, Mexican Foreign Minister Marcelo Ebrard announced on Twitter that he would lead his country's delegation, while Secretary of State Mike Pompeo is expected to represent the U.S. Trump will not be present for the meeting, with travel to Europe previously scheduled.
The U.S. Chamber of Commerce is considering options, including taking legal action, to block the Trump administration's newly announced tariffs on goods imported from Mexico. When asked on what grounds they plan to sue, a spokesperson for the business lobbying group told Axios: "that's being explored."
Why it matters: TheU.S. Chamber of Commerce has staunchly opposed the Trump administration's tariff approach, but recently taken steps to court Trump on infrastructure, as Axios' Jonathan Swan reported earlier this month. John Murphy, the Chamber's senior vice president of international affairs, told reporters on Friday that the group feels there's no other option than to fight back against Trump's trade policy.
Stocks fell sharply in the final day of May trading, following President Trump's surprise decision to slap tariffs on Mexican imports.
The bottom line: The S&P 500 lost 1.32% on Friday, bringing the total May loss to 6.58%. That's the index's worst monthly performance of 2019, after having hit an all-time high back in April, and puts it just 1.73% higher than at this point in 2018.
Chinese manufacturing activity fell into contraction in May for the first time since December, data released overnight on Thursday showed.
The big picture: It's the latest major piece of Chinese economic data to sink. Exports fell in April, the country’s retail sales drifted lower, and industrial profits slumped.
In a toned-down and largely peaceable two-page letter, Mexican President Andrés Manuel López Obrador (AMLO) wrote to President Trump that he disagreed with his decision to add 5% blanket tariffs to all Mexican goods.
Details: "With all due respect, although you have the right to express it, 'America First' is a fallacy because until the end of times, even beyond national borders, justice and universal fraternity will prevail," AMLO wrote.
Our thought bubble, via Axios' Felix Salmon: Strategically, it makes zero sense for the U.S. to enter a two-front trade war, engaging Mexico even as the confrontation with China is reaching a boiling point. China and Mexico are 2 of America's 3 largest trading partners. To start trade wars with both of them is a declaration of isolationism not seen since 1945.
As Trump announcements go, his planned tariffs on Mexican goods appeared more orchestrated than most with a tweet, a presidential statement from the press office and a background call with reporters.
But behind the scenes, it was an administration-wide scramble. As with many presidential "announcements," this once sprang from intense frustration and boiled over quickly with staff rushing to react.
Politicians are racing to produce films as an outlet to extend their influence after their Washington careers expire.
Why it matters: It used to be that high-powered politicos would look to establish themselves on cable TV or in the nonprofit world after leaving office. But as young consumers spend more time watching video online via apps like Netflix, politicians are seizing on the power of streaming video to influence the next generation.
Already having laid off the highest number of employees in nearly a decade and attempting to recover from a year in which declining global car sales likely reduced world GDP by 0.2%, the auto industry is facing a direct hit from President Trump's threatened tariffs on all goods from Mexico.
Why it matters: Mexico recently became the No. 1 trading partner with the U.S., and a significant percentage of that trade is completed by auto companies. Much of the "trade" is American auto companies exchanging parts, goods and services within entities they own, Deutsche Bank Securities chief economist Torsten Slok pointed out in a note to clients Thursday night.
