Trump has decided to “punish” Mexico customs duties.
Donald trump has announced that it will use its emergency powers against neighboring Mexico and will be levied on all imports from this country customs duties “punishment” for not doing enough in the fight against illegal migration.
Trump has promised that from June 10 the Mexican goods will be charged a 5% fee, but if the Mexican government does not take the required measures against illegal immigrants coming through its territory to the us border, duties will increase and reach 25%.
Press Secretary of the White house Sarah Sanders stated that the main duty of the US President is to protect American citizens and the Mexican government, there are enough opportunities and time to slow down the flow of illegal migrants, as the intersection of Mexico from the southern border to the North they go for three weeks.
According to CNN, the current law on economic emergency powers of the President, passed in 1977, gives Trump the right to apply different kinds of economic sanctions against enemies of the United States, but never in the history of these powers were not used against neighbouring friendly countries — and none of the presidents have not used as sanctions, customs duties.
USA and Mexico are bound by ties of free trade agreements, trade turnover between the two countries is approaching 650 billion, Mexico accounted for 13.6% of total U.S. imports. 5% duty on the 350-billion Mexican import will result in an additional 17 billion tax burden on American consumers and is likely to lead to retaliatory duties on the 300-billion U.S. exports to Mexico.
Just today took effect Chinese tariffs on American exports of 60 billion dollars, imposed in response to similar steps of the administration trump.
The Minister of Finance Steven Mnuchin and Secretary of Commerce Robert Leitheiser speak strongly against the abolition of free trade with Mexico. The initiator of the “punitive tariffs”, was an adviser and speechwriter trump Stephen Miller, a known supporter of the most radical methods of struggle with illegal immigration.