US President Donald Trump has announced he will impose a 5% tariff on all Mexican goods in order to stop immigrants cross the border illegally, in a move that could severely jeopardize the new North American trade agreement.
Trump announced the new levy on Twitter on 30 May, 2019, and said it will gradually increase the longer the dispute goes on.
….at which time the Tariffs will be removed. Details from the White House to follow.
— Donald J. Trump (@realDonaldTrump) May 30, 2019
According to a statement from The White House, the tariffs will increase to 10% on July 1, 15% on August 1, 20% on September 1 and, ultimately 25% on October 1, where they will remain until the so-called ‘border crisis’ is resolved.
To address the emergency at the Southern Border, President Trump announced moments ago that he is invoking his authority under the International Emergency Economic Powers Act to impose a 5% tariff on all goods imported from Mexico. https://t.co/G56QgONiBp
— The White House (@WhiteHouse) May 30, 2019
5% tariffs on Mexican imports could see the US Treasury make as much as US$17 billion and that will increase to $87 billion if charges reach 25%.
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The levy, however, threatens to undermine the United States-Mexico-Canada Agreement (USMCA), which was struck in October 2018, following a trade war between the three countries and 12 months of negotiations.
Al presidente Donald Trump en son de paz. https://t.co/5XdiY7hfeL
— Andrés Manuel (@lopezobrador_) May 31, 2019
Mexico’s President Andres Manuel Lopez Obrador, responded by publishing an open letter on Twitter address to Trump in he said “I don’t want confrontation” and said a Mexican delegation would visit Washington to settle the matter.
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