On May 30, the White House released a statement announcing the imposition of a 5 percent tariff on all goods imported from Mexico, starting on June 10. The tariff is intended to "address the emergency at the Southern border" and will be levied using the International Emergency Economic Powers Act.

According to the statement, the administration will remove these tariffs if it determines that Mexico takes "effective actions" to alleviate "illegal migration." Tariffs will be gradually increased according to the below schedule if the administration determines that Mexico "has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States."

• July 1: Increase to 10 percent tariff on all goods.
• August 1: Increase to 15 percent tariff on all goods.
• September 1: Increase to 20 percent tariff on all goods.
• October 1: Increase to 25 percent tariff on all goods.

Tariffs will permanently remain at 25 percent "unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory." The statement came out the same day the administration sent a draft statement of administrative action (SAA) for the U.S.-Mexico-Canada Agreement to Congress. Submitting the draft SAA is a procedural step that the administration must send to Congress before lawmakers can vote on the USMCA, but was criticized by Democrats as "premature."

Publication date: 5/31/2019

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