US president Donald Trump has expanded his “tariff man” mandate beyond China to Mexico, where he plans to apply a 5% tariff on all goods as of June 10 if authorities do not take concrete steps to halt the number of Central American migrants entering the US via Mexico.
In March of this year, over 100,000 asylum seekers
reached the US’ southern border, with Foreign Affairs (a Council on Foreign Relations publication) claiming that most came from “El Salvador, Guatemala, or Honduras […] to escape gang violence, poverty, and lack of opportunity”.
According to CNN, the new tariffs could place major US corporate names in big trouble, as more than two-thirds of trade from Mexico consists of exchanges between US firms and their subsidiaries
Today, Reuters reported that Mexico City is taking the threat seriously
and has sent a high-level delegation to Washington to discuss the matter. Speaking to press Sunday
, Acting US Chief of Staff Mick Mulvaney emphasised that “we intentionally left the declaration sort of ad hoc,” adding that “there’s no specific target, there’s no specific percent, but things have to get better. They have to get dramatically better”. A crisis for carmakers
Although a vast array of goods from computers and personal electronics to agricultural produce and alcohol cross the US-Mexican border every day, the single largest sector placed in jeopardy by Trump’s tariff threats is automakers.