Trump says U.S. will place tariff on Mexico
U.S. President Donald Trump tweeted about an upcoming 5% tariff on all Mexican goods.
According to a series of tweets posted on the official Donald J. Trump Twitter account the evening of May 30 and morning of May 31, the tariff will go into effect Monday, June 10, “until such time as illegal migrants coming through Mexico, and into our country, stop.”
Trump also tweeted that the tariff on Mexican goods will gradually increase until “the illegal immigration problem is remedied, at which time tariffs will be removed.” According to the tweets, the tariffs are also designed to pressure Mexico to “take back their country from the drug lords and cartels. Trump also suggested that companies will start moving back from Mexico, which he said has taken 30% of the U.S. auto industry, to avoid the tariffs.
The White House released a statement saying that tariffs on Mexican goods will rise to 10% on July 1 if the immigration problem has not been resolved, and then increase to 15% on August 1, 20% on September 1 and 25% on October 1. They would remain at 25% until the U.S. was satisfied immigration issues have been resolved.
Hun Quach, VP of international trade for the Retail Industry Leaders Association (RILA), issued a statement sharply criticizing the new tariffs, which were announced the same day U.S. Trade Representative Robert Lighthizer asked Congress to start the approval process for the new United States-Mexico-Canada Agreement (USMCA).
“Threatening tariffs on Mexican imports while simultaneously seeking support in Congress for a trade deal aimed at keeping trade barriers low with Mexico is a confusing and counterproductive strategy,” said Quach. Whether the rhetorical target is Mexico or China, the bill is adding up for American consumers who will pay the price for these tariffs."
Retailers have already been expressing concern about the existing tariffs on goods imported from China. On May 20, trade group the Footwear Distributors & Retailers of America (FDRA) released a letter signed by footwear retailers and brands including Nike, Foot Locker, DSW, Under Armour, Wolverine World Wide, Aldo, Converse and Puma to President Trump asking him to abandon plans to implement a proposed 25% tariff on an additional $300 million in Chinese goods. The letter said the increased tariffs could have a “catastrophic” impact “for our consumers, our companies, and the American economy as a whole.”
In addition, analysts from J.P. Morgan released a report identifying identified Target, Bed Bath & Beyond, RH (formerly Restoration Hardware), and Floor & Décor as the retailers who will likely see the greatest impact on their operating profits from the current tariffs on goods manufactured in China. J.P. Morgan also said a proposed new round of China tariffs would especially affect Dick’s Sporting Goods, Bed Bath & Beyond, BJ’s Wholesale, Best Buy, Michael’s, Walmart, Target, and Costco.
According to a series of tweets posted on the official Donald J. Trump Twitter account the evening of May 30 and morning of May 31, the tariff will go into effect Monday, June 10, “until such time as illegal migrants coming through Mexico, and into our country, stop.”
Trump also tweeted that the tariff on Mexican goods will gradually increase until “the illegal immigration problem is remedied, at which time tariffs will be removed.” According to the tweets, the tariffs are also designed to pressure Mexico to “take back their country from the drug lords and cartels. Trump also suggested that companies will start moving back from Mexico, which he said has taken 30% of the U.S. auto industry, to avoid the tariffs.
The White House released a statement saying that tariffs on Mexican goods will rise to 10% on July 1 if the immigration problem has not been resolved, and then increase to 15% on August 1, 20% on September 1 and 25% on October 1. They would remain at 25% until the U.S. was satisfied immigration issues have been resolved.
Hun Quach, VP of international trade for the Retail Industry Leaders Association (RILA), issued a statement sharply criticizing the new tariffs, which were announced the same day U.S. Trade Representative Robert Lighthizer asked Congress to start the approval process for the new United States-Mexico-Canada Agreement (USMCA).
“Threatening tariffs on Mexican imports while simultaneously seeking support in Congress for a trade deal aimed at keeping trade barriers low with Mexico is a confusing and counterproductive strategy,” said Quach. Whether the rhetorical target is Mexico or China, the bill is adding up for American consumers who will pay the price for these tariffs."
Retailers have already been expressing concern about the existing tariffs on goods imported from China. On May 20, trade group the Footwear Distributors & Retailers of America (FDRA) released a letter signed by footwear retailers and brands including Nike, Foot Locker, DSW, Under Armour, Wolverine World Wide, Aldo, Converse and Puma to President Trump asking him to abandon plans to implement a proposed 25% tariff on an additional $300 million in Chinese goods. The letter said the increased tariffs could have a “catastrophic” impact “for our consumers, our companies, and the American economy as a whole.”
In addition, analysts from J.P. Morgan released a report identifying identified Target, Bed Bath & Beyond, RH (formerly Restoration Hardware), and Floor & Décor as the retailers who will likely see the greatest impact on their operating profits from the current tariffs on goods manufactured in China. J.P. Morgan also said a proposed new round of China tariffs would especially affect Dick’s Sporting Goods, Bed Bath & Beyond, BJ’s Wholesale, Best Buy, Michael’s, Walmart, Target, and Costco.