Beginning June 10, 2019, the US will impose tariffs of 5% on all Mexican imports. A statement from the White House stated that the tariffs are meant to address the influx of illegal immigrants coming through the southern border. The Trump Administration hopes that the tariffs on all Mexican goods will incentivize Mexico to “help solve the problem.”

The Trump Administration will solely be responsible for evaluating if Mexico has taken effective actions in finding a resolution. In the event the US determines sufficient measures were not taken, tariffs will be raised 5% on the first of each month—up to 25% by October 1, 2019. The 25% tariff will remain until Mexico “substantially stops the illegal inflow of aliens coming through its territory.”

Some members of Congress have indicated the tariffs may impact the passage of the United States, Mexico, Canada Agreement (USMCA). Deringer will continue to monitor these tariffs and others. Additional information on the tariffs on Mexican goods can be found in the White House’s statement dated May 30, 2019.