Dear Valued Customer,
On May 30, the White House announced that a 5% tariff will be imposed on goods from Mexico effective June 10 under the International Emergency Economic Powers Act of 1977. The tariffs are an effort to push Mexico to address immigration issues. If Mexico does not take significant action to resolve the immigration crisis, tariffs will be increased according to the following schedule:
5% on June 10
10% on July 1
15% on August 1
20% on September 1
25% on October 1
Unless Mexico substantially stops the illegal inflow of aliens coming in through its territory, rates will remain at 25% thereafter, the White House said.
If implemented, this will most likely mean additional tariffs on top of existing rates of duty, including on NAFTA qualifying goods.
Although Mexico’s President denounced Trump’s threat, the Mexican government immediately dispatched a team of negotiators to begin talks on the matter. However, one U.S. official was quoted as saying that there has already been plenty of time to talk and we don’t need talk, we need action.
Depending on those talks, it remains to be seen as to whether Mexico can stave off these additional tariffs before June 10.
If you have any questions, please contact us.
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