WEB DESK
In a surprise announcement that could compromise a major trade deal, President Donald Trump announced that he is slapping a 5 per cent tariff on all Mexican imports, with effect from June 10.
This move is aimed at pressurising the country to do more to crack down on the surge of Central American migrants trying to cross the US border.
President Trump had earlier declared a national emergency to tackle what he claims is a crisis at the US southern border.
Trump said the percentage will gradually increase up to 25 per cent until the Illegal Immigration problem is remedied.
The decision showed the administration going to new lengths and looking for new levers, to pressure Mexico to take action even if those risk upending other policy priorities, like the United States-Mexico-Canada Agreement, USMCA.
This trade deal is the cornerstone of Trump’s legislative agenda and beneficial to his reelection effort.
Trump made the announcement by tweet after telling reporters earlier that he was planning a major statement that would be his “biggest” so far on the border.
Trump has accused the Mexican government of failing to do enough to halt the flow of asylum-seekers from countries including El Salvador, Honduras and Guatemala.
But the sudden tariff threat comes at a peculiar time, given how hard the administration has been pushing for passage of the USMCA, which would the North American Free Trade Agreement.
Border agents say they are overwhelmed, but critics say they are mishandling and mistreating migrants. Jesus Seade, Mexico’s top diplomat for North America, said the tariffs would be disastrous.
In late March, Trump threatened to shut the entire US-Mexico border if Mexico didn’t immediately halt illegal immigration. Just a few days later, however, he backed off the threat, saying he was pleased with steps Mexico had taken in recent days.