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December 29, 2018

The US Threatens New Tariffs On Imports From Mexico

May 31, 2019

President Trump issued a surprise statement yesterday advising the U.S. intends on implementing a 5% tariff on all goods from Mexico, beginning June 10th, 2019.

He further indicated the tariffs would gradually increase until the illegal immigration problem is resolved. The tariffs would increase to 10% on July 10th, and rising at a rate of 5% at the start of each subsequent month until it caps out at 25% on October 1st, 2019.

The U.S. Aims To Decrease Illegal Immigration

The President said the tariffs would remain in place until illegal migrants coming through Mexico into the U.S. stop. The White House stated Mexico needs to be more aggressive in suppressing the number of illegal immigrants crossing their borders destined for America.

White House Chief of Staff, Mick Mulveney, advised “the tariffs would only be removed if the number of people crossing the border start coming down immediately and in a significant and substantial number”.

This announcement is in direct contradiction to the announcement on May 17th, that removed the steel and aluminum tariffs on goods from Canada and Mexico.

In response to the proposed tariffs, Mexico has sent an envoy to Washington to try and negotiate with the U.S. government.

How Will This Move Affect Canada?

This is a move that could have a negative effect on the already precarious U.S. Mexico Canada Free Trade Agreement (USMCA) negotiations.

Vice President Pence met with Prime Minister Justin Trudeau yesterday, to try and ensure the ratification of USMCA continues to move forward.

What Is Your Best Course Of Action?

Contact Pacific Customs Brokers and consult with an experienced Trade Advisor. They may be able to improve your international trade endeavors.