Yesterday President Trump threated a new 5% tariff “on all goods imported from Mexico” if they do not get control and increase its immigration enforcement actions. Trump tweeted “On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied.”
On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,..
— Donald J. Trump (@realDonaldTrump) May 30, 2019
A statement issued by the White House followed, which said that tariff would increase to 10% on July 1, 15% on Aug.1, 20% on Sept. 1 and to 25% on Oct. 1. “Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States,” the statement said. “Mexico has very strong immigration laws and could easily halt the illegal flow of migrants, including by returning them to their home countries.”
According to CNN.com “Trump has threatened Mexico with tariffs in the past as he has grown frustrated with the flow of Central American migrants to the southern US border. He last made this threat in April amid another threat to close the border with Mexico. After walking back that threat, he suggested that tariffs would be a more effective means to pressure Mexico to do more.” Both sides of the aisle are debating if this tactic if it were to come to fruition, would accomplish its goal. Some are concerned that it would just mean importing companies would have to decide whether to eat the cost or pass them on to American consumers.
Trump, however, told reporters “Before we close the border we’ll put the tariffs on the cars…I don’t think we’ll ever have to close the border, because the penalty of tariffs on cars coming into the United States from Mexico at 25% will be massive.” Money does talk. “According to the Office of the US Trade Representative, US imports of goods from Mexico totaled $346.5 billion in 2018. That includes cars and machinery as well as agricultural products.”