May 31, 2019 - The U.S. has announced that it will impose tariffs of 5% on all goods imported from Mexico beginning June 10th, according to a statement from President Donald Trump. He has invoked the International Emergency Economic Powers Act to impose the tariffs, which are meant to address "the emergency at the Southern Border."
The Trump administration will determine if Mexico's actions to alleviate the so-called migrant crisis are sufficient. If they are deemed insufficient, then the President intends to increase the tariff rate each month as follows:
- 10% on all Mexican goods imported on July 1, 2019;
- 15% on all Mexican goods imported on August 1, 2019;
- 20% on all Mexican goods imported on September 1, 2019;
- 25% on all Mexican goods imported on October 1, 2019
The tariffs will remain at 25% unless Mexico can "substantially stop the illegal inflow of aliens coming through its territory." If it is determined the actions taken by Mexico are sufficient and effective, the tariffs will be removed.
BDP International is actively monitoring this situation to ensure we are supporting our customers with this change in regulation. We will continue to keep you apprised of updates as we receive them.