President trump said he will impose a tariff of 5% on Mexican imports. It will increase each month until it reaches 25% by October 1, if Mexico can’t deal with the flow of migrants to the United States — said the President.
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,..
— Donald J. Trump (@realDonaldTrump) May 30, 2019
The administration will impose tariffs, based on International law 1997, which allows the President to set them in a state of emergency in the country. According to the acting Minister of internal security Macalinao, Mexico has made too little effort, stopping only 1/5 of the migrants.
Nick Mulvaney, the head of the administration is convinced that the number of migrants at the border should «significantly» decrease. The expenses connected with increase of tariffs on Mexican goods will inevitably hit ordinary Americans, but Mulvaney believes that «Americans now pay for it. Illegal immigration costs the taxpayers dearly».
President trump has described the efforts of Mexico as a «passive cooperation to deter a mass invasion.» According to him, if Mexico begins to work effectively, his administration immediately abolish tariffs.
The President of Mexico, andrés Manuel lópez Obrador, said in the letter that «social problems are not solved by the introduction of tariffs» and reiterated its proposal to deal with the flow of migrants, with a concerted effort on the development of the countries of Central America. He added that Mexico is doing everything that can be done without violating human rights.
The statement of trump immediately reflected in the world foreign exchange market: the Mexican peso fell by 2%. Experts believe that the tariffs will harm the ratification of the new trade agreement between USA, Mexico and Canada.
USA mainly imports from Mexico are steel, aluminium, automobiles, auto parts, household appliances, fruits and vegetables. In 2018, States imported Mexican goods worth $346,5 billion. Mexico has also significantly affected by the tariffs: share of exports to America is 37% of the country’s economy.