ANNOUNCEMENT 30 May 2019

The United States threatened to impose an escalating tariff, starting at 5%, on imports from Mexico as a means of leverage over immigration controls.

NUMBER OF INTERVENTIONS

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  • 0 harmful
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  • 0 liberalising
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Import tariff

On June 7, 2019 President Trump issued a pair of tweets that read as follows:

I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended. Mexico, in turn, has agreed to take strong measures to....

....stem the tide of Migration through Mexico, and to our Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States. Details of the agreement will be released shortly by the State Department. Thank you!

This announcement brought to an end an episode that began the previous week with another pair of tweets. On May 30, 2019 President Trump made the following threat:

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,..

....at which time the Tariffs will be removed. Details from the White House to follow.

To be clear, this proposed penalty would be an additional duty of 5% on top of any other tariffs that might be applicable to a specific shipment.

Later that same day, the White House released a more detailed "Statement from the President Regarding Emergency Measures to Address the Border Crisis" that reads in relevant part as follows:

To address the emergency at the Southern Border, I am invoking the authorities granted to me by the International Emergency Economic Powers Act.  Accordingly, starting on June 10, 2019, the United States will impose a 5 percent Tariff on all goods imported from Mexico.  If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed.  If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019.  Similarly, if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019.  Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.  Workers who come to our country through the legal admissions process, including those working on farms, ranches, and in other businesses, will be allowed easy passage.

If Mexico fails to act, Tariffs will remain at the high level, and companies located in Mexico may start moving back to the United States to make their products and goods.  Companies that relocate to the United States will not pay the Tariffs or be affected in any way.

Over the years, Mexico has made massive amounts of money in its dealings with the United States, and this includes the tremendous number of jobs leaving our country.

Should Mexico choose not to cooperate on reducing unlawful migration, the sustained imposition of Tariffs will produce a massive return of jobs back to American cities and towns.  Remember, our great country has been the “piggy bank” from which everybody wants only to TAKE.  The difference is that now we are firmly and forcefully standing up for America’s interests.

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