President Donald Trump announced new tariffs against all products imported from Mexico, saying that they would stay in effect until the illegal immigration problem was solved, a move that immediately hit U.S. stock futures and the Mexican peso.
“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP,” Trump tweeted. “The Tariff will gradually increase until the Illegal Immigration problem is remedied at which time the Tariffs will be removed.”
In a separate statement, Trump blamed Mexico for not doing enough to stop illegal immigrants from Central America crossing into the U.S., saying “Mexico has not treated us fairly.”
Trump said the tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by Oct. 1. “Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory,” Trump said.
Dow Jones Industrial Average futures YM00, -1.14% , S&P 500 futures ES00, -1.23% and Nasdaq futures NQ00, -1.61% tumbled immediately after Trump’s announcement, indicating a potentially rough day for Wall Street on Friday. The Mexican peso USDMXN, +3.0300% tumbled 2% against the dollar.
Trump said he is enacting the tariffs under the 1977 International Emergency Economic Powers Act, which gives the president the authority to regulate commerce during a national emergency.
In a conference call with reporters Thursday night, acting White House chief of staff Mick Mulvaney was asked for a metric of success that will indicate when tariffs can be removed. “We did not set a specific percentage or specific number,” Mulvaney said, adding that the administration will assess