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USA hits Mexico with Tariffs on all Imports

Posted May 31, 2019

Under U.S. Customs Issues

On the evening of May 30, in an effort to push Mexico to address immigration issues, the White House announced that a 5% tariff will be imposed on goods from Mexico effective June 10. If Mexico's response is not deemed sufficient, tariffs will be increased according to the following schedule:

10% on July 1;
15% on August 1;
20% on September 1;
25% on October 1.   

Rates will remain at 25% thereafter until Mexico "substantially stops the illegal inflow of aliens coming in through its territory." 

The president asserts this action under the International Emergency Economic Powers Act of 1977, which has previously been utilized to freeze or block assets of foreign governments or nationals. 

Similar to previous tariff actions initiated by the administration, we anticipate this action to mean additional tariffs on top of existing rates of duty, including on NAFTA qualifying goods.  We expect a federal register notice prior to initiation of these tariffs, with additional details clarifying the scope of the action. 

Source: Sandler, Travis & Rosenberg