Trump puts 5-percent tariff on Mexican imports in response to migrants

WASHINGTON — President Donald Trump announced Thursday the United States will impose a 5 percent tariff on all imported Mexican goods starting June 10 and threatened future increases to pressure Mexico into stemming the flow of Central American migrants crossing the U.S. southern border.

Trump, in an evening tweet, said the tariff “will gradually increase until the Illegal Immigration problem is remedied.” In a follow-up statement the president vowed to raise the tariff to 25 percent and keep it in place “unless and until Mexico substantially stops the illegal inflow” of migrants traveling through Mexico before attempting to enter the United States.

“Mexico has very strong immigration laws and could easily halt the flow of migrants, including by returning them to their home countries,” Trump said in a statement issued by the White House late Thursday.

The across-the-board tariff would touch on all sectors, from agriculture to manufacturing, White House officials said in a phone briefing Thursday night.

The United States imports nearly $345 billion worth of goods from Mexico, according to the Office of the U.S. Trade Representative. Economists have previously warned that Trump’s series of import taxes will inevitably be passed along to American consumers.

Acting White House Chief of Staff Mick Mulvaney, speaking to reporters Thursday night, said the move would not hurt American pocketbooks.

“Americans are paying for this right now," Mulvaney said. "Illegal immigration comes at a cost. American taxpayers are paying for what’s going on at the border. This is already impacting the economy negatively.” 

Trump did not offer details on what bench marks Mexico must meet for the United States to remove the tariffs. The president only stated that the effectiveness of Mexico’s actions and the decision to remove the tariffs will be left up to the “sole discretion and judgment” of his administration.

Under Trump’s order, the tariff will go into effect June 10 and increase 5 percent each month until October, when it would be capped at 25 percent.

Mexican officials did not immediately respond to Trump’s surprise announcement. Newly elected Mexican president Andrés Manuel López Obrador has previously said it is not his country's responsibility to aid the United States with deportations. Even so, deportations under Obrador have steadily increased from 6,000 in December when he assumed office, to 15,000 in April, according to data from Mexico’s National Migration Institute.

Trump, in a statement, said he has “confidence that Mexico can and will act swiftly to help the United States stop this long-term, dangerous, and deeply unfair problem.” The president has previously lauded Mexico's stepped-up immigration enforcement efforts.

In March, the president threatened to shut down the U.S. border with Mexico to trade citing his frustration with the growing number of Central American migrants seeking asylum at the southern border with Mexico. Last month he walked back that threat, saying he was instead considering a tariff on cars imported from Mexico.

"Before we close the border we'll put the tariffs on the cars," Trump told reporters last month. "I don't think we'll ever have to close the border, because the penalty of tariffs on cars coming into the United States from Mexico at 25 percent will be massive."

Trump hinted at his plans earlier Thursday, telling reporters at the White House he would soon announce a “big league statement” on border security.

“We are going to do something very dramatic on the border because people are coming into our country,” Trump said.

Trump delivered his announcement hours after administration officials told Congress he would soon seek congressional approval of a new North American trade deal, known as the United States-Mexico-Canada Agreement.

Senate Finance Committee Chairman Chuck Grassley (R-Iowa), in a statement, criticized the tariff, calling it a "misuse of presidential tariff authority" that could upend the passage of the new trade agreement.

"I support nearly every one of President Trump’s immigration policies," Grassley said, "but this is not one of them."