President Trump has announced plans to impose a five percent tariff on all goods imported from Mexico starting on June 10th.
In a statement, the President said the “United States of America has been invaded by hundreds of thousands of people coming through Mexico and entering our country illegally. This sustained influx of illegal aliens has profound consequences on every aspect of our national life—overwhelming our schools, overcrowding our hospitals, draining our welfare system, and causing untold amounts of crime.” He went on to say “thousands of innocent lives are taken every year” due to gangs, smugglers, human traffickers and illegal drugs pouring across the border.
President Trump says this has to stop and claimed Mexico “could easily halt the illegal flow of migrants, including by returning them to their home countries.” Since Mexico hasn’t done this, the President is evoking the International Emergency Economic Powers Act to impose new tariffs on the country.
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 tariffs will start at five percent, but the President said they will be raised to ten percent, on July 1st, if illegal migration isn’t stemmed through “effective actions taken by Mexico.” The tariffs will continue to rise until that happens and they’ll hit 15 percent on August 1st, 20 percent on September 1st and 25 percent on October 1st.
While the President said the tariffs are designed to get Mexico to stop the flow of illegal immigrants and drugs, he also said the tariffs could pressure companies to move production back to the United States. As he claimed, “The sustained imposition of tariffs will produce a massive return of jobs back to American cities and towns.” Trump later tweeted Mexico has “taken 30% of our auto industry,” and suggested these jobs could return to America if tariffs remain high.
The tariffs could have a significant impact on consumers and automakers as a number of vehicles are built in Mexico. BMW could be especially hard hit as the company is set to begin production of the 3-Series at their brand-new San Luis Potosi plant later this year. Of course, they’re not the only company with a plant in Mexico as GM, FCA, Mazda, Nissan, Honda, Toyota and Volkswagen build vehicles there as well.
In order not to pay Tariffs, if they start rising, companies will leave Mexico, which has taken 30% of our Auto Industry, and come back home to the USA. Mexico must take back their country from the drug lords and cartels. The Tariff is about stopping drugs as well as illegals!
— Donald J. Trump (@realDonaldTrump) May 31, 2019