Democrats Hold Out on USMCA as Trump Walks Back Mexico Tariffs

President Donald Trump’s decision not to impose tariffs on Mexico removed one obstacle for Congress to approve his North American trade deal, but his administration has more work to do to smooth the final stages of the accord’s ratification.

Trump accepted Mexico’s offer of tougher immigration enforcement as sufficient to dissuade him from levying a 5% charge on all Mexican imports. The move late Friday deflated tensions with Mexico and, as far as Canada is concerned, clears a path for the U.S.-Mexico-Canada trade agreement to move forward, Canadian Finance Minister Bill Morneau said Sunday on Bloomberg TV.

That leaves House Democrats as the last major stakeholders still to get on board. Speaker Nancy Pelosi’s decision on when (and whether) the deal will get a vote depends on talks with the Trump administration to address Democrats’ concerns, according to a senior Democratic aide.

“We’re not ready,’’ Representative Debbie Dingell, a Michigan Democrat, said Sunday on Fox News. “The votes in the House are not there yet until these changes take place.’’

During last week’s uncertainty over trade with Mexico, most Democrats publicly separated USMCA deliberations from Trump’s tariff plan, which means that removing the tariff threat doesn’t necessarily clear the way for a new deal to replace the North American Free Trade Agreement. Dingell said she wants changes to the agreement’s labor, environmental and enforcement provisions that would satisfy her skeptical colleagues.

Deciding against the Mexican tariffs does, however, help the president with his own party -- especially in the Republican-led Senate.

Finance Committee Chairman Chuck Grassley of Iowa warned last week that the USMCA -- Trump’s top legislative priority this year -- would be in peril if the president went ahead with the Mexican tariffs.