President Trump issued the following statement last night assessing a five percent tariff on products of Mexico effective June 10, 2019.
Read the Whitehouse statement here <
The tariffs are being assessed under the International Emergency Economic Powers Act, which allows the President to regulate commerce after declaring a national emergency (in this case, the immigration crisis at the Southern Border). The tariffs will gradually increase according to the following schedule until the President, in his discretion, decides that Mexico has taken sufficient action to address the crisis:
* July 1, 2019 – Increase to 10 percent ad valorem;
* August 1, 2019 – Increase to 15 percent ad valorem;
* September 1, 2019 – Increase to 20 percent ad valorem; and
* October 1, 2019 – Increase to 25 percent ad valorem.
It is unclear at this point how this action will affect the passage of the pending U.S.-Mexico-Canada Agreement or the U.S.’s current obligations under NAFTA.
