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Trump said that as of June 10, a 5% tariff would be imposed and would slowly increase "until the problem of illegal immigration is resolved"
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The President of the United States, Donald Trump, has announced tariffs on all goods from Mexico, demanding that the country curbs illegal immigration to the United States.
In a tweet, Mr Trump said that as of June 10, a 5% tariff would be imposed and would increase slowly "until the problem of illegal immigration is resolved ".
Jesus Seade, Mexico's first diplomat for North America, said the proposed tariffs would be "disastrous".
Trump declared a national emergency on the US-Mexico border in February.
He said it was necessary to tackle what he calls a crisis on the southern border of the United States.
Border officials say they are overwhelmed, but critics say they handle and mistreat migrants badly.
The US president has long accused Mexico of not doing enough to stem the tide of people, and this is his latest attempt to pressure the neighboring state.
Seade said Mexico "must respond vigorously" if tariffs are applied.
However, Mexican President Andres Manuel Lopez Obrador responded that he did not want a "confrontation".
"I propose to deepen our dialogue to find other alternatives to the problem of migration," he wrote in a letter on Thursday.
On June 10, the United States will impose a 5% tariff on all goods coming into our country from Mexico, until irregular migrants arrive in Mexico and in our country, STOP. The tariff will increase gradually until the problem of illegal immigration is solved, ..
– Donald J. Trump (@realDonaldTrump) May 30, 2019
During his election campaign and throughout his tenure, President Trump sought funds to build a wall on the US-Mexico border.
He declared the state of national emergency at the border in order to divert federal funds for a wall of protection, but a judge blocked his efforts in May.
The White House said Thursday that the president would use the International Law on Economic Powers to urgently implement the new tariffs on Mexico.
The announcement was made the same day the White House announced in Congress its intention to enter into a new trade deal with Mexico and Canada.
What has Trump announced?
In a statement to the White House, Trump said the rates would increase by 5% each month until October 1st, when the rate would reach 25%.
The tariffs would remain at this level "unless and until Mexico substantially stops the illegal entry of aliens crossing its territory," he said.
"For years, Mexico has not treated us with fairness – but we are now baderting our rights as a sovereign nation," the statement said.
The president also targeted his Democratic opponents, accusing them of "total failure to do their homework" on border security.
The Democrat-controlled House of Representatives is taking legal action to end the Trump administration's efforts to build a border wall, saying it would be a waste of funds and that it would stop not illegal immigration.
Critics say border agents take a harsh approach under the Trump government to control US-Mexican border migration, noting the deaths of six migrant children detained in the United States since September.
What will the tariffs affect?
Mexico was the second largest supplier of US goods last year, with imports totaling $ 346.5 billion ($ 275 billion), according to the representative of the US Trade Bureau.
It is known for its agricultural products like avocados and tequila, but the country is also an important manufacturing center and home to many American companies.
The country produces hundreds of thousands of cars every month and is also home to technology and aerospace companies. This is one of the G20 economies.
The US companies Ford, General Motors, John Deere, IBM and Coca Cola are all based in Mexico, as well as thousands of other multinationals.
Janet Lewis, an badyst at Macquarie Securities, said that manufacturers' prices would rise unclearly.
"The unknown is the impact on suppliers because components can commute between Mexico, the United States and Canada up to 20 times before moving on to badembled cars," he said. she told the Reuters news agency.
The effects are already being felt. Stock prices in companies like Toyota and Nissan have fallen by about 3%, while those of Mazda have fallen by 7%, Reuters reported. Japanese companies all have manufacturing plants in Mexico.
The president's statement comes amid a trade war with China.
After complaining for years of the US trade deficit with China, Mr. Trump has imposed tariffs on hundreds of billions of dollars worth of goods from the country.
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