Trump turns trade war sights on Mexico
31/05/2019
He added: “Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States.”
Beyond October, he said tariffs will remain at 25% if Mexico “fails to act”. He expressed hope that companies located in Mexico may start moving back to the US to make their products and goods and he promised that companies that relocate to the US will not pay the tariffs “or be affected in any way”.
This move comes only days after the US agreed to lift tariffs on steel and aluminium imports from Mexico and from Canada, which appeared to pave the way for all three countries to ratify the US-Mexico-Canada Agreement (USMCA), the successor to the long-standing North America Free Trade Agreement.
In spite of this, Mr Trump said that, “to address the emergency” at the US’s southern border, he was invoking the authority granted to him by the International Emergency Economic Powers Act to impose the new tariffs.
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