Donald Trump imposes a 5% duty on all imports from Mexico | Finance and Markets

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The US President Donald Trump plans to impose a 5% duty on all imports from Mexico on June 10.

“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”, wrote Donald Trump on Twitter.

The US president announced the measure after earlier yesterday told journalists that he was planning a “big statement”, which would be the biggest one so far on the border issue.

He warned that the tariffs “will gradually increase until the problem of illegal immigration is eliminated”.

“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”, says the White House statement. “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”, adds the statement.

Donald Trump accuses the Mexican government of failing to do enough to contain the flow of Central American migrants, such as Salvador, Honduras, Guatemala, who are seeking asylum in the US.

The United States imported 346.5 billion USD of goods from Mexico in 2018, an increase of 10.3% over the year prior, according to the USTR. The 2018 total accounted for 13.6% of overall US imports that year.

This move, which has major repercussions for US carmakers and other southern-frontier companies and the US economy as a whole, is the latest Trump’s action of his trade wars. The decision is only taken a few days after Washington removed the steel duty from Mexico, which caused vengeance against American agricultural products.

Donald Trump is using the sensitive themes of trade and immigration, in an attempt to increase his popularity in the re-election campaign in 2020.