Trump Announces 5% Tariffs on Mexican Imports Effective June 10th

On May 30th, in response to the record surges in illegal immigration crossing at the U.S.-Mexico border reported by U.S. Customs and Border Protection (CBP) officials in recent weeks, President Trump announced a 5% tariff on all U.S. goods imported from Mexico beginning June 10th. Moreover, Trump threatened to further escalate duties by an additional 5% each month until October 1st, where they would remain at 25%, should Mexico fail to act or respond to growing U.S. immigration concerns.

The additional duties will apply to nearly $346.5 billion worth of products imported from Mexico, including cars, machinery and agricultural products.

Here’s a breakdown of Trump’s escalating tariff timeline on U.S. goods from Mexico:

Date % Tariff Rate
June 10, 2019 5%
July 1, 2019 10%
August 1, 2019 15%
September 1, 2019 20%
October 1, 2019 25%

 

Although the timing of the announcement may have come as a surprise to some, Trump’s decision to assess additional duties on Mexican imports has been a threat since April, when he walked back his initial plan to close the US-Mexico border and revealed his intention to first add tariffs to Mexican products in order to discourage illegal immigration.

Importers of products from Mexico should prepare for impending supply chain disruptions. This new development certainly may have ramifications in terms of passing the new USMCA agreement through Congress as well.

Shapiro will continue to monitor the situation and provide updates as they become available.