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June 5, 2019

U.S. could impose a 5% duty on all Mexican goods starting on June 10

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PLEASE NOTE: Mexico and the United States reached an agreement at the end of the day on June 7 regarding the extra controls that Mexico will have to enforce to prevent the passage on its territory of Latin American migrants heading to the United States. The threat of U.S. duties on Mexican goods is suspended.

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Claiming that gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across the United States' Southern Border, President Donald Trump said on May 31 that Mexico must step up and help solve this problem.

The U.S. will soon impose an extra duty on all goods imported from Mexico, until the President is satisfied that Mexico has alleviated the illegal migration crisis.

Starting on June 10, 2019, the United States will impose a 5 percent tariff on all goods imported from Mexico. If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined at Trump's sole discretion, the tariffs will be removed.

If the crisis persists, however, the tariffs will be raised to 10 percent on July 1, 2019. Similarly, if Mexico still has not taken action to the liking of the U.S. Administration, tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019.

The tariffs could permanently remain at the 25 percent level unless and until the U.S. finds that Mexico substantially stops the illegal inflow of aliens coming through its territory.

Mexico and the United States are currently discussing and may come to a resolution before June 10.


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