Background

In an effort to push Mexico to address immigration issues, the White House has announced that a five percent tariff will be imposed on goods from Mexico effective June 10. If Mexico’s response is not deemed sufficient, tariffs will be increased according to the following schedule.

- 10 percent on July 1

- 15 percent on August 1

- 20 percent on Sept. 1

- 25 percent on Oct. 1

Rates will remain at 25 percent thereafter until Mexico “substantially stops the illegal inflow of aliens coming in through its territory.”

The president took this action under the International Emergency Economic Powers Act of 1977, which has previously been utilized to freeze or block assets of foreign governments or nationals. 

Similar to previous tariff actions initiated by the administration, we anticipate this action to mean additional tariffs on top of existing rates of duty, including on NAFTA qualifying goods. We expect a Federal Register notice prior to initiation of these tariffs that will provide additional details clarifying the scope of the action.

Click here to watch an MSNBC segment on the impact of this development featuring ST&R’s Nicole Bivens Collinson.

If you have questions, please contact Larry Ordet at (305) 894-1003.

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