President Donald Trump speaks with reporters as he departs the White House, in Washington, DC, on May 30, 2019.
Jim Watson | AFP | Getty Images
The U.S. will impose a 5% tariff on all Mexican imports from June 10 — and more duties will be added in the coming months if Mexico does not take action “reduce or eliminate the number of illegal aliens” crossing into the U.S., the White House said Thursday.
It comes as U.S. Trade Representative Robert Lighthizer on Thursday sent a letter to congressional leaders, kick starting the process of approving updates to the North American Free Trade Agreement.
U.S. President Donald Trump first announced the Mexico tariffs via Twitter.
Mexico was the second-biggest importer of goods into the United States in 2018, according to the Office of the U.S. Trade Representative.
The United States imported $346.5 billion of goods in 2018, an increase of 10.3% over the year prior. The 2018 total accounted for 13.6% of overall U.S. imports that year.
Linked to ‘illegal migration crisis’
“If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019,” the White House said.
“Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019,” it added. “Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.”
Mexico is the largest foreign supplier of agricultural products to the United States, totaling $26 billion last year. Top categories among those imports included fresh vegetables, fresh fruit, wine and beer, and processed foods.
Trade agreement updates
According to a copy of a letter obtained by CNBC, Lighthizer on Thursday submitted to congressional leaders a draft of the so-called Statement of Administrative Action, which would allow the Trump administration to send the proposed United States-Mexico-Canada Agreement to Congress within 30 days.
Trump has indicated he wants to quickly overhaul trade relations with Canada and Mexico, but any such move would require Congressional approval of the United States-Mexico-Canada Agreement. The White House has said it wants to ratify the deal this summer.
Read the full White House statement
To address the emergency at the Southern Border, I am invoking the authorities granted to me by the International Emergency Economic Powers Act. Accordingly, starting on June 10, 2019, the United States will impose a 5 percent Tariff on all goods imported from Mexico. If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019. Similarly, if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019. Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory. Workers who come to our country through the legal admissions process, including those working on farms, ranches, and in other businesses, will be allowed easy passage.
— CNBC’s Kayla Tausche and Jacob Pramuk contributed to this report.
