On Thursday May 30, 2019, United States President Donald Trump announced through an official White House correspondence that the U.S. would be imposing tariffs on all imports of Mexico-origin goods into the commerce of the United States.
The tariffs, which are being imposed under the International Emergency Economic Powers Act, are a response to the ongoing influx of migrants to America’s border with Mexico. The President has called on the government of Mexico to stem the tide of migrants or face progressively increasing tariffs. Despite efforts by U.S. and Mexican officials to reconcile the matter, the tariffs are expected to go into effect.
A tariff of 5% will be imposed on all Mexican imports beginning Monday June 10, 2019. Subsequently, the United States will increase the tariff rate based on the following schedule if it does not feel the Mexican government has taken sufficient steps to address the migrant crisis.
- July 1 – 10%
- August 1 – 15%
- September 1 – 20%
- October 1 – 25%
Businesses importing products from Mexico on or after June 10th should be aware the tariff will apply to all imported goods.
In the event the tariff rate continues to increase based on the schedule above, importers may be required to augment their customs bonds accordingly to reflect the rising valuation of their shipments.