Donald Trump vows rapid increase in tariffs on Mexico

Vastavam web: President Donald Trump, incensed by a surge of illegal immigrants across the southern border, vowed on Thursday to impose a tariff on all goods coming from Mexico starting at 5% and ratcheting higher until the flow of people ceases. Trump’s move dramatically ramped up his battle to control a tide of immigrants that has increased despite his efforts to build a border wall and halt the thousands of people crossing from Central America through Mexico to the U.S. border.

The president’s decision, abruptly announced in a tweet and subsequent statement, was a direct challenge to the Mexican President Andres Manuel Lopez Obrador and appeared to take the Mexican government by surprise.

Higher tariffs will start at 5% on June 10 and increase monthly until reaching 25% on Oct. 1, unless Mexico takes immediate action, he said. “If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the tariffs will be removed,” Trump said.

The announcement rattled investors who feared that worsening trade frictions could hurt the global economy. The Mexican peso, U.S. stock index futures and Asian stock markets tumbled on the news, including the shares of Japanese automakers who ship cars from Mexico to the United States.

“We’re in a good moment building a good relationship (with the United States) and this comes like a cold shower,” said Mexico’s deputy foreign minister for North America, Jesus Seade.