Via Twitter, President Trump announced yesterday that the U.S. will levy a 5 percent tariff on all goods from Mexico that will "gradually increase" until illegal immigration across the border stops. Fox News reports:
"On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP," Trump wrote. "The Tariff will gradually increase until the Illegal Immigration problem is remedied, ... ..at which time the Tariffs will be removed. Details from the White House to follow."
Fox News is told the tariff on all goods by land, sea, and air from Mexico will hike to 10 percent on July 1 -- and potentially increase substantially from there.
If the Trump administration deems that Mexico has not taken significant action to reduce or eliminate the number of illegal aliens crossing the border, tariffs will be increased to 15 percent in August, 20 percent in September, and so on. "Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory," according to the president's tweets.
Read more about how the tariffs will affect the steel industry in our steel report section.