President Trump Threatens Tariffs on Goods from Mexico

President Trump tweeted yesterday that he plans to impose a 5% tariff on all goods from Mexico starting June 10th as a measure to stem the tide of illegal immigration. A White House announcement went on to state that if the immigration crisis persists, the tariffs will be raised to 10% on July 1st, 15% on August 1st, 20% on September 1st, and 25% on October 1st. The tariffs would remain permanently at 25% “unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.” 

This move could jeopardize the USMCA trade agreement. Mexico is the third largest trading partner with the United States with $611.5 billion in total goods trade during 2018, with imports accounting for $346.5 billion.

We will continue to update you as more details become available.