U.S. President Donald Trump has promised to impose a 5 per cent tariff on Mexican goods in an attempt to prevent asylum seekers from entering the U.S. at the southern border.
The tariffs, which would be imposed through an emergency order announced Thursday, are effective on June 10, Trump said.
A statement from the White House says if Mexico doesn’t take action to stop the influx of migrants, the tariffs will increase incrementally and become fixed at 25 per cent.
“Mexico has very strong immigration laws and could easily halt the illegal flow of migrants, including by returning them to their home countries,” the statement said.
Tariffs — fees paid by U.S. companies on any goods they want to import — have been criticized for the impact they have on consumers and businesses.
It’s not clear where the announcement leaves the yet-to-be-ratified Canada-U.S.-Mexico Agreement on trade (CUSMA).
The announcement comes after Trump promised dramatic action on the border on Thursday.
An increasing number of migrants, largely from Central America, have entered the United States through Mexico to seek asylum.
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