President Trump has declared escalating tariffs against Mexico if the latter does not help curb the flow of illegals from Central America. The Daily Caller reports:
President Donald Trump shocked not only the international community but Congress, as well, when he announced new tariffs on Mexico in an attempt to halt illegal immigration at the U.S. southern border.
Now, the markets are showing signs of trepidation.
Trump has said that starting June 10, the United States will be implementing a 5% tariff on all imports from Mexico. These newest rounds of tariffs are reportedly in response to the largest illegal immigration crossing at the El Paso border earlier this week, where a group of over 1,000 migrants illegally crossed the border. (RELATED: Here’s How Mexico Could Respond To Trump’s Tariff Threat)
The tariffs are projected to increase incrementally each month by five percentage points until reaching a 25% tariff on Mexican imports by October if Mexico fails to better address illegal migration into the United States.
This is a first step to coerce Mexico into policing its own borders, and could be supplemented by an attack on remittances back to the country as well.