United States / Mexico. On May 30, the White House issued a statement announcing that as of June 10, a 5 percent tariff is imposed on all goods imported from Mexico. The tariff is intended to "address the emergency at the southern border" and will be enforced using the International Emergency Economic Powers Act.
According to the statement, the administration will eliminate these fees if it determines that Mexico takes "effective measures" to alleviate "illegal migration." The tariffs will be gradually increased according to the following schedule if the administration determines that Mexico "has not taken steps to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States."
- July 1: Increase to 10 percent tariff on all goods.
- August 1: 15 percent rate increase on all goods.
- September 1: Increase to 20 percent tariff on all goods.
- October 1: Increase to 25 percent tariff on all goods.
The tariffs will remain permanently at 25 percent "unless and until Mexico substantially stops the illegal entry of aliens entering through its territory." The statement came on the same day the administration sent Congress a draft administrative action statement (SAA) for the U.S.-Mexico-Canada Agreement. The introduction of the SAA bill is a procedural step the administration must send to Congress before lawmakers can vote on the USMCA, but it was criticized by Democrats as "premature."
