In an effort to put pressure on Mexico to address immigration issues, President Trump announced that a 5% tariff will be imposed on goods from Mexico effective June 10. The President stated that if Mexico’s response is not deemed sufficient, tariffs will be increased according to the following schedule:
- 10% on July 1
- 15% on August 1
- 20% on September 1
- 25% on October 1
Rates will remain at 25% thereafter until Mexico “substantially stops the illegal inflow of aliens coming in through its territory.”
The president asserts this action under the International Emergency Economic Powers Act of 1977, which has previously been utilized to freeze or block assets of foreign governments or nationals.
Similar to previous tariff actions initiated by the administration, we anticipate this action to mean additional tariffs on top of existing rates of duty, including on NAFTA qualifying goods. We expect a federal register notice prior to initiation of these tariffs, with additional details clarifying the scope of the action. Reported by Sandler Travis and Rosenberg, PA. May 31