On Thursday May 30, 2019, U.S. President Donald Trump announced through an official White House statement that the U.S. will be imposing tariffs on all imports of Mexico-origin goods into the commerce of the United States.
The tariffs, which are being imposed under the International Emergency Economic Powers Act, are a response to the ongoing influx of migrants to America’s border with Mexico. The President has called on the government of Mexico to stem the tide of migrants or face progressively increasing tariffs.
A tariff of 5% will be imposed on all Mexican imports beginning June 10, 2019. Subsequently, the United States will increase the tariff rate based on the following schedule if it does not feel the Mexican government has taken sufficient steps to address the migrant crisis.
• July 1 – 10%
• August 1 – 15%
• September 1 – 20%
• October 1 – 25%
Additional instructions from Customs and Border Protection (CBP) are likely to be forthcoming to address specific processing and/or documentation requirements. In the interim, those who anticipate importing products from Mexico into the U.S. after June 10th, need to be aware the tariff will apply.
In the event the tariff rate continues to increase based on the schedule above, importers may be required to increase their customs bond accordingly, to reflect the rising duty associated with their entries.