President Trump announced plans to impose and then escalate tariffs on all goods imported from Mexico, beginning June 10, tasking Mexico with stopping the flow of illegal immigration from Central America to the United States.
A 5 percent tariff would take effect as early as June 10, with plans to raise those to 10 percent by July 1, escalating to up to 25 percent by October if Mexico doesn’t comply with President Trump’s demands.
The new tariff threat has already impacted US stock futures and global stock markets, including shares of Asian and European automakers, which were down Friday after the announcement, according to a CNN report. Stock futures indicate those losses would extend to the United States, the report continues. Mexico is one of America’s largest trading partners, and according to the US Chamber of Commerce, approximately 6 million U.S. jobs are tied to trade with Mexico.
Mexico’s President, Andres Manuel Lopez Obrador, says Mexico will respond with “great prudence” to the new tariff threats.
*This is an evolving story and will be updated as details emerge.