Latest news with #US-Mexico
Yahoo
17 hours ago
- Business
- Yahoo
US-Mexico relations: tariff vertigo, construction and silver linings
Ollie Brown is a GlobalData economist focusing on the construction sector and foreign direct investment in the LATAM region. Evidently for constructors and investors on either side of the US-Mexico border, US President Donald Trump's tariffs are rewriting international trade relations with many implications across Latin American economies. Short-term, 25% levies on all exports to the US-- made effective March 4th-- are expected to cripple derived construction demand in Mexico. Long term, there could be benefits as the retainment of high skilled labour and Mexico's foothold in changing global trade could foster more resilient growth, striding away from US dependence. Since Trump's inauguration on January 20th, the White House announced a slew of tariffs on the US's largest trading partners, biased to nations holding significant trade surpluses to the US. Seemingly, US tariffs are being threatened to further national interests, seeking to maximise rent on goods imported to the US, while leveraging access to the US's market as a bargaining tool. Exact levy figures – and market ramifications – continue to fluctuate parallel Trump's sporadic remarks, but to-date (29/05/2025): Mexico faces a 25% bilateral tariff on all USMCA non-compliant exports to the US, made effective March 4th, revoking USMCA free trade terms (consistent with Canada). Mexico is subject to 25% blanket automotive, steel and aluminum tariffs on all exports to the US, whereby steel and aluminum levies hit markets on March 12th, and automotive on April 3rd. Mexico was exempt from further 'Liberation Day' tariffs (along with Canada) announced April 2nd, testament to President Claudia Sheinbaum's cooperative stance as she has avoided retaliation. For example, as part of Mexico's 30-day suspension on US tariffs in February, Mexico agreed to deploy 10,000 National Guard troops to its northern border to combat fentanyl trafficking and illegal immigration. It shows the US is open to trade political concessions for reprieves in the ongoing trade war. For Latin America, while constant policy u-turns make forecasting difficult, the most obvious political concession appears to be cooperating in curtailing migration to the US, one of the Trump administration's defining issues. Hence, the ability to leverage migration control in the tariff tit-for-tat means the likes of Mexico, Brazil, Argentina and other countries south of the US border face comparatively softer treatment. While China, on the other hand, faces an accumulated surtax of 145% in tariffs. Despite relatively subdued tariff measures, in the short-term, levies will abet waning export demand given the scale of US-Mexican trade. Evidently, Mexican exports to the US have been growing YoY to £505.9b in 2024. Similarly, US export share has increased to approximately 82% in 2024, indicative of how dependent Mexico had become on US trade. Therefore, tariffs will disproportionally weigh on Mexico's economy as exporters scramble to substitute US demand. Additionally, FX volatility has been adding to bearish sentiment, albeit recently, the US dollar has dramatically depreciated against the Mexican Peso, from 20.84 (March 11th) to 19.54 (March 24th)-- as illustrated in Figure 2. Therefore, peso price appreciations will somewhat soften the blow to Mexican traders as their currency becomes more regionally competitive. Still, this boost in value will not be substantive enough to counter the expected loss in demand from US levies. Previously, GlobalData argued that tariffs on Mexico would almost inevitably be inflationary, as higher import costs would translate into elevated building material prices and higher barriers to obtaining new building permits which would stunt construction output. However, it now seems that the inflationary effects from the tariffs are being outweighed by the deflationary effects of waning demand as trade volumes plummet. Effectively, the higher prices Mexican constructors would hypothetically have to pay on the supply-side are currently redundant, because there isn't sufficient demand to action the project. Regardless, the short-term net effect is negative. Therefore, GlobalData has revised Mexico's construction output forecast to decline by 7% in 2025. Similarly, economic growth forecasts from TSLombard have been revised downwards from 0.5% to 0.2% for 2025. Parallel to ongoing US-Mexican negotiations over trade in goods and services, Mexican migration to the US is expected to drop as the administration revamps deportation efforts, which have been an effective deterrent for would-be migrants. Given that US remittances to Mexico totalled approximately $65bn in 2024, mass deportations will compound short-term pain. However, the retention of skilled labour in Mexico, previously lost to US industries, could foster more resilient, long-term growth. Figure 3 showcases that in 2022, undocumented workers accounted for approximately 14% of the US's total construction workforce. It is a figure that likely increased in parallel with record surges in migration under the Biden-Harris administration. According to CPWR, workers of Mexican origin account for approximately one-third of the US's total construction labour (2023). Therefore, Trump's hostile migratory policies will inadvertently redirect construction labourers back to Mexico, increasing the ability of Mexican construction to source skilled labour. Mexico's capacity to capitalise on a more robust labour force, however, hinges on its ability to foster the public-private sectors to generate funds to stimulate construction jobs and growth. As previously mentioned, decreased US-Mexican trade will infringe this ability, but long-term, Mexico is taking steps to attract a more diverse assortment of investors. For instance, all trade partners listed in Figure 4 face US levies of varying levels– and correspondingly pose a substitutable investment, particularly in China. Mexico also reached a revamped trade deal with the European Union in January, is currently discussing trade opportunities with China, and is reportedly exploring closer relations with Mercosur– Latin America's regional trade block. GlobalData forecasts rebounded (albeit modest) construction growth in Mexico at a 2% CAGR from 206 to 2029. "US-Mexico relations: tariff vertigo, construction and silver linings" was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Advertiser
3 days ago
- Politics
- The Advertiser
US stands by Indo-Pacific allies against China 'threat'
US Defence Secretary Pete Hegseth has reassured allies in the Indo-Pacific they will not be left alone to face increasing military and economic pressure from China, while insisting that they also contribute more to their own defence. He said Washington will bolster its defences overseas to counter what the Pentagon sees as rapidly developing threats by Beijing, particularly in its aggressive stance toward Taiwan. China has conducted numerous exercises to test what a blockade would look like of the self-governing island, which Beijing claims as its own and the US has pledged to defend. China's army "is rehearsing for the real deal," Hegseth said on Saturday in a keynote speech at a security conference in Singapore. "We are not going to sugarcoat it — the threat China poses is real. And it could be imminent." Hegseth says China is training to invade Taiwan. China has a stated goal of having its military have the capability to take Taiwan by force if necessary by 2027, a deadline that is seen by experts as more of an aspirational goal than a hard war deadline. But China also has built sophisticated man-made islands in the South China Sea to support new military outposts and developed highly advanced hypersonic and space capabilities, which are driving the US to create its own space-based "Golden Dome" missile defences. Speaking at the Shangri-La Dialogue, a global security conference hosted by the International Institute for Security Studies, Hegseth said China is no longer just building up its military forces to take Taiwan, it's "actively training for it, every day". Hegseth also called out China for its ambitions in Latin America, particularly its efforts to increase its influence over the Panama Canal. He urged countries in the region to increase defence spending to levels similar to the five per cent of their gross domestic product European nations are now pressed to contribute. "We must all do our part," Hegseth said. In the last few months the Trump administration has taken a Patriot missile defence battalion out of the Indo-Pacific in order to send it to the Middle East, a massive logistical operation that required 73 military cargo aircraft flights, and sent Coast Guard ships back to the US to help defend the US-Mexico border. Hegseth was asked why the US pulled those resources if the Indo-Pacific is the priority theatre for the United States. He did not directly answer but said the shift of resources was necessary to defend against Houthi missile attacks launched from Yemen, and to bolster protections against illegal immigration into the US At the same time, he stressed the need for American allies and partners to step up their own defence spending and preparations, saying the US was not interested in going it alone. "Ultimately a strong, resolute and capable network of allies and partners is our key strategic advantage," he said. "China envies what we have together, and it sees what we can collectively bring to bear on defence, but it's up to all of us to ensure that we live up to that potential by investing." The Indo-Pacific nations caught in between have tried to balance relations with both the US and China over the years. Beijing is the primary trading partner for many, but is also feared as a regional bully, in part due to its increasingly aggressive claims on natural resources such as critical fisheries. Hegseth said committing US support for Indo-Pacific nations would not require local governments to align with the West on cultural or climate issues. It is not clear if the US can or wants to supplant China as the region's primary economic driver. But Hegseth's push follows Trump's visit to the Middle East, which resulted in billions of dollars in new defence agreements. US Defence Secretary Pete Hegseth has reassured allies in the Indo-Pacific they will not be left alone to face increasing military and economic pressure from China, while insisting that they also contribute more to their own defence. He said Washington will bolster its defences overseas to counter what the Pentagon sees as rapidly developing threats by Beijing, particularly in its aggressive stance toward Taiwan. China has conducted numerous exercises to test what a blockade would look like of the self-governing island, which Beijing claims as its own and the US has pledged to defend. China's army "is rehearsing for the real deal," Hegseth said on Saturday in a keynote speech at a security conference in Singapore. "We are not going to sugarcoat it — the threat China poses is real. And it could be imminent." Hegseth says China is training to invade Taiwan. China has a stated goal of having its military have the capability to take Taiwan by force if necessary by 2027, a deadline that is seen by experts as more of an aspirational goal than a hard war deadline. But China also has built sophisticated man-made islands in the South China Sea to support new military outposts and developed highly advanced hypersonic and space capabilities, which are driving the US to create its own space-based "Golden Dome" missile defences. Speaking at the Shangri-La Dialogue, a global security conference hosted by the International Institute for Security Studies, Hegseth said China is no longer just building up its military forces to take Taiwan, it's "actively training for it, every day". Hegseth also called out China for its ambitions in Latin America, particularly its efforts to increase its influence over the Panama Canal. He urged countries in the region to increase defence spending to levels similar to the five per cent of their gross domestic product European nations are now pressed to contribute. "We must all do our part," Hegseth said. In the last few months the Trump administration has taken a Patriot missile defence battalion out of the Indo-Pacific in order to send it to the Middle East, a massive logistical operation that required 73 military cargo aircraft flights, and sent Coast Guard ships back to the US to help defend the US-Mexico border. Hegseth was asked why the US pulled those resources if the Indo-Pacific is the priority theatre for the United States. He did not directly answer but said the shift of resources was necessary to defend against Houthi missile attacks launched from Yemen, and to bolster protections against illegal immigration into the US At the same time, he stressed the need for American allies and partners to step up their own defence spending and preparations, saying the US was not interested in going it alone. "Ultimately a strong, resolute and capable network of allies and partners is our key strategic advantage," he said. "China envies what we have together, and it sees what we can collectively bring to bear on defence, but it's up to all of us to ensure that we live up to that potential by investing." The Indo-Pacific nations caught in between have tried to balance relations with both the US and China over the years. Beijing is the primary trading partner for many, but is also feared as a regional bully, in part due to its increasingly aggressive claims on natural resources such as critical fisheries. Hegseth said committing US support for Indo-Pacific nations would not require local governments to align with the West on cultural or climate issues. It is not clear if the US can or wants to supplant China as the region's primary economic driver. But Hegseth's push follows Trump's visit to the Middle East, which resulted in billions of dollars in new defence agreements. US Defence Secretary Pete Hegseth has reassured allies in the Indo-Pacific they will not be left alone to face increasing military and economic pressure from China, while insisting that they also contribute more to their own defence. He said Washington will bolster its defences overseas to counter what the Pentagon sees as rapidly developing threats by Beijing, particularly in its aggressive stance toward Taiwan. China has conducted numerous exercises to test what a blockade would look like of the self-governing island, which Beijing claims as its own and the US has pledged to defend. China's army "is rehearsing for the real deal," Hegseth said on Saturday in a keynote speech at a security conference in Singapore. "We are not going to sugarcoat it — the threat China poses is real. And it could be imminent." Hegseth says China is training to invade Taiwan. China has a stated goal of having its military have the capability to take Taiwan by force if necessary by 2027, a deadline that is seen by experts as more of an aspirational goal than a hard war deadline. But China also has built sophisticated man-made islands in the South China Sea to support new military outposts and developed highly advanced hypersonic and space capabilities, which are driving the US to create its own space-based "Golden Dome" missile defences. Speaking at the Shangri-La Dialogue, a global security conference hosted by the International Institute for Security Studies, Hegseth said China is no longer just building up its military forces to take Taiwan, it's "actively training for it, every day". Hegseth also called out China for its ambitions in Latin America, particularly its efforts to increase its influence over the Panama Canal. He urged countries in the region to increase defence spending to levels similar to the five per cent of their gross domestic product European nations are now pressed to contribute. "We must all do our part," Hegseth said. In the last few months the Trump administration has taken a Patriot missile defence battalion out of the Indo-Pacific in order to send it to the Middle East, a massive logistical operation that required 73 military cargo aircraft flights, and sent Coast Guard ships back to the US to help defend the US-Mexico border. Hegseth was asked why the US pulled those resources if the Indo-Pacific is the priority theatre for the United States. He did not directly answer but said the shift of resources was necessary to defend against Houthi missile attacks launched from Yemen, and to bolster protections against illegal immigration into the US At the same time, he stressed the need for American allies and partners to step up their own defence spending and preparations, saying the US was not interested in going it alone. "Ultimately a strong, resolute and capable network of allies and partners is our key strategic advantage," he said. "China envies what we have together, and it sees what we can collectively bring to bear on defence, but it's up to all of us to ensure that we live up to that potential by investing." The Indo-Pacific nations caught in between have tried to balance relations with both the US and China over the years. Beijing is the primary trading partner for many, but is also feared as a regional bully, in part due to its increasingly aggressive claims on natural resources such as critical fisheries. Hegseth said committing US support for Indo-Pacific nations would not require local governments to align with the West on cultural or climate issues. It is not clear if the US can or wants to supplant China as the region's primary economic driver. But Hegseth's push follows Trump's visit to the Middle East, which resulted in billions of dollars in new defence agreements. US Defence Secretary Pete Hegseth has reassured allies in the Indo-Pacific they will not be left alone to face increasing military and economic pressure from China, while insisting that they also contribute more to their own defence. He said Washington will bolster its defences overseas to counter what the Pentagon sees as rapidly developing threats by Beijing, particularly in its aggressive stance toward Taiwan. China has conducted numerous exercises to test what a blockade would look like of the self-governing island, which Beijing claims as its own and the US has pledged to defend. China's army "is rehearsing for the real deal," Hegseth said on Saturday in a keynote speech at a security conference in Singapore. "We are not going to sugarcoat it — the threat China poses is real. And it could be imminent." Hegseth says China is training to invade Taiwan. China has a stated goal of having its military have the capability to take Taiwan by force if necessary by 2027, a deadline that is seen by experts as more of an aspirational goal than a hard war deadline. But China also has built sophisticated man-made islands in the South China Sea to support new military outposts and developed highly advanced hypersonic and space capabilities, which are driving the US to create its own space-based "Golden Dome" missile defences. Speaking at the Shangri-La Dialogue, a global security conference hosted by the International Institute for Security Studies, Hegseth said China is no longer just building up its military forces to take Taiwan, it's "actively training for it, every day". Hegseth also called out China for its ambitions in Latin America, particularly its efforts to increase its influence over the Panama Canal. He urged countries in the region to increase defence spending to levels similar to the five per cent of their gross domestic product European nations are now pressed to contribute. "We must all do our part," Hegseth said. In the last few months the Trump administration has taken a Patriot missile defence battalion out of the Indo-Pacific in order to send it to the Middle East, a massive logistical operation that required 73 military cargo aircraft flights, and sent Coast Guard ships back to the US to help defend the US-Mexico border. Hegseth was asked why the US pulled those resources if the Indo-Pacific is the priority theatre for the United States. He did not directly answer but said the shift of resources was necessary to defend against Houthi missile attacks launched from Yemen, and to bolster protections against illegal immigration into the US At the same time, he stressed the need for American allies and partners to step up their own defence spending and preparations, saying the US was not interested in going it alone. "Ultimately a strong, resolute and capable network of allies and partners is our key strategic advantage," he said. "China envies what we have together, and it sees what we can collectively bring to bear on defence, but it's up to all of us to ensure that we live up to that potential by investing." The Indo-Pacific nations caught in between have tried to balance relations with both the US and China over the years. Beijing is the primary trading partner for many, but is also feared as a regional bully, in part due to its increasingly aggressive claims on natural resources such as critical fisheries. Hegseth said committing US support for Indo-Pacific nations would not require local governments to align with the West on cultural or climate issues. It is not clear if the US can or wants to supplant China as the region's primary economic driver. But Hegseth's push follows Trump's visit to the Middle East, which resulted in billions of dollars in new defence agreements.
West Australian
3 days ago
- Politics
- West Australian
US stands by Indo-Pacific allies against China 'threat'
US Defence Secretary Pete Hegseth has reassured allies in the Indo-Pacific they will not be left alone to face increasing military and economic pressure from China, while insisting that they also contribute more to their own defence. He said Washington will bolster its defences overseas to counter what the Pentagon sees as rapidly developing threats by Beijing, particularly in its aggressive stance toward Taiwan. China has conducted numerous exercises to test what a blockade would look like of the self-governing island, which Beijing claims as its own and the US has pledged to defend. China's army "is rehearsing for the real deal," Hegseth said on Saturday in a keynote speech at a security conference in Singapore. "We are not going to sugarcoat it — the threat China poses is real. And it could be imminent." Hegseth says China is training to invade Taiwan. China has a stated goal of having its military have the capability to take Taiwan by force if necessary by 2027, a deadline that is seen by experts as more of an aspirational goal than a hard war deadline. But China also has built sophisticated man-made islands in the South China Sea to support new military outposts and developed highly advanced hypersonic and space capabilities, which are driving the US to create its own space-based "Golden Dome" missile defences. Speaking at the Shangri-La Dialogue, a global security conference hosted by the International Institute for Security Studies, Hegseth said China is no longer just building up its military forces to take Taiwan, it's "actively training for it, every day". Hegseth also called out China for its ambitions in Latin America, particularly its efforts to increase its influence over the Panama Canal. He urged countries in the region to increase defence spending to levels similar to the five per cent of their gross domestic product European nations are now pressed to contribute. "We must all do our part," Hegseth said. In the last few months the Trump administration has taken a Patriot missile defence battalion out of the Indo-Pacific in order to send it to the Middle East, a massive logistical operation that required 73 military cargo aircraft flights, and sent Coast Guard ships back to the US to help defend the US-Mexico border. Hegseth was asked why the US pulled those resources if the Indo-Pacific is the priority theatre for the United States. He did not directly answer but said the shift of resources was necessary to defend against Houthi missile attacks launched from Yemen, and to bolster protections against illegal immigration into the US At the same time, he stressed the need for American allies and partners to step up their own defence spending and preparations, saying the US was not interested in going it alone. "Ultimately a strong, resolute and capable network of allies and partners is our key strategic advantage," he said. "China envies what we have together, and it sees what we can collectively bring to bear on defence, but it's up to all of us to ensure that we live up to that potential by investing." The Indo-Pacific nations caught in between have tried to balance relations with both the US and China over the years. Beijing is the primary trading partner for many, but is also feared as a regional bully, in part due to its increasingly aggressive claims on natural resources such as critical fisheries. Hegseth said committing US support for Indo-Pacific nations would not require local governments to align with the West on cultural or climate issues. It is not clear if the US can or wants to supplant China as the region's primary economic driver. But Hegseth's push follows Trump's visit to the Middle East, which resulted in billions of dollars in new defence agreements.
Perth Now
3 days ago
- Politics
- Perth Now
US stands by Indo-Pacific allies against China 'threat'
US Defence Secretary Pete Hegseth has reassured allies in the Indo-Pacific they will not be left alone to face increasing military and economic pressure from China, while insisting that they also contribute more to their own defence. He said Washington will bolster its defences overseas to counter what the Pentagon sees as rapidly developing threats by Beijing, particularly in its aggressive stance toward Taiwan. China has conducted numerous exercises to test what a blockade would look like of the self-governing island, which Beijing claims as its own and the US has pledged to defend. China's army "is rehearsing for the real deal," Hegseth said on Saturday in a keynote speech at a security conference in Singapore. "We are not going to sugarcoat it — the threat China poses is real. And it could be imminent." Hegseth says China is training to invade Taiwan. China has a stated goal of having its military have the capability to take Taiwan by force if necessary by 2027, a deadline that is seen by experts as more of an aspirational goal than a hard war deadline. But China also has built sophisticated man-made islands in the South China Sea to support new military outposts and developed highly advanced hypersonic and space capabilities, which are driving the US to create its own space-based "Golden Dome" missile defences. Speaking at the Shangri-La Dialogue, a global security conference hosted by the International Institute for Security Studies, Hegseth said China is no longer just building up its military forces to take Taiwan, it's "actively training for it, every day". Hegseth also called out China for its ambitions in Latin America, particularly its efforts to increase its influence over the Panama Canal. He urged countries in the region to increase defence spending to levels similar to the five per cent of their gross domestic product European nations are now pressed to contribute. "We must all do our part," Hegseth said. In the last few months the Trump administration has taken a Patriot missile defence battalion out of the Indo-Pacific in order to send it to the Middle East, a massive logistical operation that required 73 military cargo aircraft flights, and sent Coast Guard ships back to the US to help defend the US-Mexico border. Hegseth was asked why the US pulled those resources if the Indo-Pacific is the priority theatre for the United States. He did not directly answer but said the shift of resources was necessary to defend against Houthi missile attacks launched from Yemen, and to bolster protections against illegal immigration into the US At the same time, he stressed the need for American allies and partners to step up their own defence spending and preparations, saying the US was not interested in going it alone. "Ultimately a strong, resolute and capable network of allies and partners is our key strategic advantage," he said. "China envies what we have together, and it sees what we can collectively bring to bear on defence, but it's up to all of us to ensure that we live up to that potential by investing." The Indo-Pacific nations caught in between have tried to balance relations with both the US and China over the years. Beijing is the primary trading partner for many, but is also feared as a regional bully, in part due to its increasingly aggressive claims on natural resources such as critical fisheries. Hegseth said committing US support for Indo-Pacific nations would not require local governments to align with the West on cultural or climate issues. It is not clear if the US can or wants to supplant China as the region's primary economic driver. But Hegseth's push follows Trump's visit to the Middle East, which resulted in billions of dollars in new defence agreements.
Business Mayor
26-05-2025
- Politics
- Business Mayor
Trump administration tells border shelters helping migrants may be illegal
The Trump administration has continued releasing people charged with being in the country illegally to non-governmental shelters along the US-Mexico border after previously telling those same organizations that providing immigrants with temporary housing and other aid may violate a law used to prosecute smugglers. Border shelters, which have long provided lodging and meals before offering transportation to the nearest bus station or airport, were rattled by a letter from the Federal Emergency Management Agency (Fema) that raised 'significant concerns' about potentially illegal activity and demanded detailed information in a wide-ranging investigation. Fema suggested shelters may have committed felony offenses related to bringing people across the border illegally or transporting them within the US. 'It was pretty scary. I'm not going to lie,' said Rebecca Solloa, executive director of Catholic Charities of the diocese of Laredo, Texas. US Immigration and Customs Enforcement (Ice) continued to ask shelters in Texas and Arizona to house people even after the 11 March letter, putting them in the awkward position of doing something that Fema appeared to say might be illegal. Both agencies are part of the Department of Homeland Security (DHS) and have also been accused of withholding funds from organizations, in addition to asking them to hand over names of those they've helped and implying that some charities are human-smuggling operations. After receiving the letter, Catholic Charities still received eight to 10 people a day from Ice until financial losses forced it to close its shelter in the Texas border city on 25 April, Solloa said. The Holding Institute community center, also in Laredo, has been taking about 20 families a week from Ice's family detention centers in Dilley and Karnes City, Texas, executive director Michael Smith said. They come from Russia, Turkey, Iran, Iraq, Papua New Guinea and China. Annunciation House in El Paso, Texas, a storied institution in the region, has been receiving five to 10 people a day from Ice, including from Honduras and Venezuela, said Ruben Garcia, its longtime executive director. The International Rescue Committee (IRC) did not get a letter but continues receiving people from Ice in Phoenix, according to a person briefed on the matter who spoke on condition of anonymity to discuss information that has not been made public. The releases include people who had been held at Ice's Krome detention center in Miami, Florida, a site of severe overcrowding. Ice's requests struck Solloa as a 'little bit of a contradiction', but Catholic Charities agreed to them. She said some guests had been in Ice detention centers for two to four weeks after being arrested in the nation's interior and ordered released by an immigration judge while their challenges to deportations wind through the courts. Others had been flown from San Diego, California, after crossing the border without authorization. Those released were from India, China, Pakistan, Turkey and Central and South America, Solloa said. Smith, a Methodist pastor, said that the Fema letter was alarming and that agreeing to continue caring for people released by Ice was 'probably not a good idea'. Still, it was an easy choice. 'There's some things that are just right to do,' he said. Tricia McLaughlin, spokesperson for the DHS, drew a distinction with large-scale releases under Trump's predecessor, Joe Biden. The Biden administration worked closely with shelters but, during its busiest times, released immigrants at bus stops or other public locations. skip past newsletter promotion Sign up to This Week in Trumpland A deep dive into the policies, controversies and oddities surrounding the Trump administration Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion 'Under the Biden administration, when Ice has aliens in its custody who are ordered released, Ice does not simply release them onto the streets of a community – Ice works to verify a sponsor for the illegal alien, typically family members or friends but occasionally a non-governmental organization,' McLaughlin said. The US government has struggled to quickly deport people who have arrived from some countries because of diplomatic, financial and logistical challenges. Those hurdles have prompted Ice to deport people to countries other than their own, including El Salvador, Costa Rica and Panama, and – this week – an attempt to remove people, mostly originally from south Asia, to South Sudan. If those options aren't available, Ice may release people in the US, which the Trump administration is reluctant to do. Fema awarded $641m to dozens of state and local governments and organizations across the country in the 2024 fiscal year to help them deal with large numbers of immigrants who crossed the border from Mexico. But Fema has suspended payments during its investigation, which requires shelters to provide 'a detailed and descriptive list of specific services provided'. Executive officers must sign sworn statements that they have no knowledge or suspicions of anyone in their organizations violating the smuggling law. The releases show how border shelters have often maintained close, if cordial, relations with federal immigration authorities at the ground level, even when senior officials publicly criticize them. 'We have a good working relationship with our federal partners. We always have,' Solloa said. 'They asked us to help, then we will continue to help, but at some point we have to say: 'Yikes, I don't have any more money for this. Our agency is hurting and I'm sorry, we can't do this anymore.'' Catholic Charities hosted at least 120,000 people at its Laredo shelter since opening in 2021 and housed 600 to 700 people on its busiest nights in 2023, Solloa said. It was counting on up to $7m from Fema. The shelter closed with a loss of nearly $1m million after not receiving any Fema money.
