Update: President Trump announced he will impose tariffs on goods imported from Mexico, starting at 5% effective June 10th and rising 5% on the first of each month until they reach 25% on October 1. The announcement caused a sell-off in equities centered on the auto industry, as anticipated. Shares of General Motors dropped more than 4%, falling near $33, the price at which the company went public in 2010 after its bankruptcy debacle.
The trade war isn’t over, and no one knows when it might end. But there’s no doubt that China is feeling the pain.
With that in mind, President Trump is turning his attention toward Mexico. He wants our Southern neighbor to be more proactive in stopping the chain of migrants reaching the border to apply for asylum. To that end, he’s considering threatening Mexico with tariffs on goods to get them to focus on the issue, and turn the migrants back before they get to the U.S. border
Trump earlier on Thursday told reporters he would soon make a “dramatic” statement about the U.S. southern border with Mexico.
Citing three unnamed administration officials, The Washington Post said the statement Trump teased and which he is planning on making on Friday would be about tariffs, although it said some White House aides were trying to talk him out of it.
Mexico is one of our largest trading partners, and a major supplier of cars and automotive parts. A call for tariffs that don’t exclude automotive goods would send shivers through Detroit.