Hello Recession: Trump Imposes Tariffs on Mexico Over Immigration

-edited

Trump Says "STOP". Will Mexico listen? Can Mexico Listen?

Tariff Man at it Again

US futures are down substantially in response to Trump's latest Tweet. Trump will set a tariff of 5% effective June 10, rising to 25% by October.

The Wall Street Journal reports Trump Threatens Tariffs on Mexican Imports in Response to Migrant Surge

The trade action comes as the Trump administration is seeking congressional ratification of a trade pact among the U.S., Mexico and Canada, to replace the North American Free Trade Agreement. The three countries’ leaders signed the deal, known as the USMCA, last year.

In a statement released by the White House, Mr. Trump said he would invoke the authorities of the International Emergency Economic Powers Act to impose a 5% tariff on all goods imported from Mexico starting June 10, and increase the tariff gradually, hitting 25% on Oct. 1.

Mexico is the U.S.’s third-largest trading partner, with goods imports of $346.5 billion in 2018, according to the Office of the U.S. Trade Representative.

“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,” Mr. Trump said. He also said that Mexican companies could avoid the tariffs by relocating to the U.S.

Instant Recession

If this dispute is not resolved immediately, recession starts today.

Imagine what would happen to the US if Mexico said screw you and halted all traffic to the US. Mexico is the US's third largest trading partner. Repercussions would be enormous.

I do not know how Mexico will respond, nor does anybody else, but this is madness.

This is not how one treats allies and major trading partners.

Trump wants Mexico to spend money to stop illegal immigration to the US.

Questions Abound

What is Trump doing to help?

Does Mexico have the money?

Excuse me for pointing out that Trump had an offer, last year, from the Senate Minority leader for over $20 billion to build a wall. Why did Trump turn that offer down?

Also, excuse me for asking: Why doesn't Trump mandate hiring checks in the US?

Finally, excuse me for pointing out that Republicans were in complete control of the Executive and Legislative branches and wasted two full years over Obamacare instead of dealing with immigration.

Mirror Mirror On the Wall

Good Lord President Trump, please look in the mirror.

This economy is headed over the cliff. It's not all Trump's fault. Indeed, place most of the blame on the Fed.

However, Trump just gave recession a great big push.

Mike "Mish" Shedlock

Comments (61)
No. 1-23
lol
lol

Mexico make cheap junk like China,Home Depot,Lowes shoddy crap,bought one of those Chinese/Mexican mowers,used it ……..once...….once damn thing quit,can't get the piece of junk to start again,like those cheap Acer junk laptops,overpriced garbage!

Stan88
Stan88

MEXICO CITY (Reuters) - Mexican government officials vow a strong and comprehensive response to President Donald Trump’s announcement to impose a blanket 5% tariff on all goods from Mexico from June 10. “We will respond with a 10% import tariff across the board on all imports from the United States” one official said. The Mexican official also hinted that US suppliers would be replaced with Chinese suppliers wherever feasible.

CautiousObserver
CautiousObserver

@lol, "Mexico make cheap junk..."

Look more closely. Many mainstream and premium products used in the US are also made in Mexico.

Menaquinone
Menaquinone

Ford should move manufacturing to Alabama or another hard working right to work state. Apple has the same choice. Don't even think about moving to Viet Nam.

Casual_Observer
Casual_Observer

Here comes stagflation.

AshH
AshH

He's not going to stop until the stock market punches him in the face. Even then, he'll blame it on Powell.

Casual_Observer
Casual_Observer

Btw I'm sticking with my prediction of a trump resignation or impeachment and a crashed economy by or before April of 2020.

Mish
Mish

Editor

"Look more closely. Many mainstream and premium products used in the US are also made in Mexico."

Bingo Ford and GM car parts for example Also, many healthcare products used in hospitals. Not many people realize the latter. It is a serious, serious issue.

Mish
Mish

Editor

"Btw I'm sticking with my prediction of a trump resignation or impeachment and a crashed economy by or before April of 2020."

Impeachment has about a 0% chance. 2% is extremely generous.

Greggg
Greggg

He keeps getting worse by the day. Nobody is that stupid so now I am thinking his buddy Netanyahu put him up to it. israel 1st.

Menaquinone
Menaquinone

Trump is trading the avocado toast voters for manufacturing voters. It'll be a cold day in Mobile when stock investors vote Dimocratic Socialist welfare state.

Augustthegreat
Augustthegreat

The whole US government system is broken: how can an idiotic president takes hostage the whole world, one after another?

Greggg
Greggg

awc13
awc13

"Finally, excuse me for pointing out that Republicans were in complete control of the Executive and Legislative branches and wasted two full years over Obamacare instead of dealing with immigration."

i hear what you are saying but you are ignoring how the minority party uses the filibuster threat to stop legislation they don't like. with trump in office that means nearly any legislation is legislation the dems don't like

Mish
Mish

Editor

AWC, Schumer offered over $20 billion to build the wall. He wanted reasonable Dreamer concessions. Trump would take that deal in one second flat today.

Trump blew it. I was surprised when Schumer offered it. I was further surprised when Trump turned it down.

Now here we are. Trump likely just killed USMCA.

Mexico, China, and the EU are all better off in the long run if the US has a recession and Trump is outed so they can negotiate with someone more stable.

This has to be on their minds. China is capable of thinking long-term even if no one else is willing.

Blurtman
Blurtman

Pace picante it is.

mudpuppet
mudpuppet

An ally that let's hundreds and hundreds of thousands simple and free access to reach our boarder.

AshH
AshH

Trump's theme song is Handlebars by Flobots.

ksdude
ksdude

Just can't win anymore. Had Hillary got elected she would've done other things that piss me off. Im at the screw them all point.

RonJ
RonJ

"What is Trump doing to help?"

What is congress doing to harm? Democrats want open borders- inviting a surge of illegal immigration.

KidHorn
KidHorn

If I were running Mexico, I would do what Trump wants. Far easier than a trade war.

Grumblenose
Grumblenose

Why shouldn't Mexico take some responsibility for what happens to the illegals it allows to travel through its land unhindered? They can do it today because it costs them nothing, but Trump is ending that!

WJ03
WJ03

Schumer made his offer with the condition that border enforcement be neutered for f the first five months of 2018. It was impossible to accept and Chuck knew. Get it straight.

The assertion that Mexico amnesty means recession is simplistic nonsense. You lose credibility when you blithely spout such silliness.