Trump Vows to Impose 5% Tariff on All Goods Imported from Mexico – and Increase It Every Month to 25% in October Unless Illegal Migrants Stop Crossing the Border to the US


The border crisis has increased since Trump took office, despite his effort to build a wall. US officials reported that 80,000 people are being held in custody, while 4,500 more migrants enter the US each day. President Trump vowed to impose a 5% tariff on all goods from Mexico, adding an additional 5% each month until it reaches 25%, and then he claims he will only end it when there is a substantial decrease in ‘illegal migrants’ crossing the border into the US. Trump said he was acting under the powers granted to him by the International Emergency Economic Powers Act. 

  • President Trump announced the five percent tariff on Mexican imports on Thursday via Twiter
  • The tariffs will start at 5 percent on June 10 before increasing every month unless Mexico takes steps to stop the surge 
  • It
    will remain at 25 percent until ‘Mexico substantially stops the illegal
    inflow of aliens’, a statement from the White House said
  • Trump’s
    move was a dramatic escalation of his battle to control a tide of
    illegal immigrants that has increased despite his efforts to build a
    border wall 
  • U.S. officials said 80,000 people are being held in custody with an average of 4,500 arriving daily 

President Donald Trump has vowed to impose
a five percent tariff on all goods from Mexico – and claims he will
only end it when ‘illegal migrants’ stop crossing the border into the
U.S.

In a surprise announcement that
could compromise a major trade deal, Trump tweeted news of the tariff on
Thursday in a bid to pressure Mexico to do more to crack down in the
surge of migrants trying to cross the U.S. border. 

The
tariffs will start at 5 percent on June 10 before jumping to 10 percent
on July 1, 15 percent on August 1, 20 percent on September 1 and go up
to 25 percent on October 1 unless Mexico takes steps to stop the surge. 

‘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,’ he tweeted.

‘The Tariff will gradually increase until
the Illegal Immigration problem is remedied at which time the Tariffs
will be removed.’

In a follow up
statement from the White House, Trump said the tariff’s would
permanently remain at 25 percent until ‘Mexico substantially stops the
illegal inflow of aliens’.  

Trump’s
move was a dramatic escalation of his battle to control a tide of
illegal immigrants that has increased despite his efforts to build a
border wall and take other steps.

U.S. officials said 80,000 people are being held in custody with an average of 4,500 arriving daily.

‘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,’ Trump said.

Mexico’s
deputy foreign minister for North America, Jesus Seade, said on
Thursday that it would be disastrous if Trump goes through with his
threat to impose the tariffs.

‘It would be extremely serious… If this is put in place, we must respond vigorously,’ Seade said.  

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Trump Abandons Resolve to Shut Down Border, Gives Mexico 1-Year Warning to Stop Illegal Flow of Drugs and Migrants!


Last week, President Trump changed his mind about closing the US border with Mexico to stop the flow of illegal drugs and migrants. Instead, he gave Mexico a ‘warning’ that, if it does not, on its own, fix the American border crisis, he will apply tariffs on cars from Mexico, which means Americans will pay the tariff in the form of higher prices. [Even the President’s strongest supporters are beginning to lose faith that any of his campaign promises will be kept in the long run.] -GEG

President Trump on Thursday said Mexico has one year to stop the flow
of illegal drugs and migrants over the border or he will slap tariffs
on the country’s cars — and then close the border.

“We want to give them a one-year warning and if the drugs don’t stop
or aren’t largely stopped, we’re going to put tariffs on Mexico and
products, in particular cars, the whole ball game is cars,” Trump told
reporters.

“If that doesn’t work, we’re going to close the border,” he continued.

Trump on Friday had threatened to close the border with Mexico this week if authorities there didn’t halt the flood of Central American migrants coming into the US.

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Ron Paul Says Trump’s New Trade Treaty that Replaces NAFTA Actually Increases Government Control

Ron Paul analyzed Trump’s new treaty, the United States-Mexico-Canada Agreement (USMCA) that replaces the North American Free Trade Agreement (NAFTA), and found that the USMCA expands government control over trade.  For example, it requires 75% of car parts to be made in North America, which will raise car prices on those using materials outside of North America, it requires auto workers to earn at least $16 per hour, which will increase prices, and it forces Mexico to import US-style compulsory unionism.  The new USMCA entangles all three countries in environmental standards and monetary policy.  A true free trade deal would simply reduce or eliminate tariffs and other trade barriers. It would not dictate wages and labor standards, or require inter-governmental cooperation on environmental standards and monetary policy.

Last week the United States, Mexico, and Canada agreed to replace the North American Free Trade Agreement (NAFTA) with a new United States-Mexico-Canada Agreement (USMCA). Sadly, instead of replacing NAFTA’s managed trade with true free trade, the new USMCA expands government’s control over trade.

For example, under the USMCA’s “rules of origin,” at least 75 percent of a car’s parts must be from the US, Canada, or Mexico in order to avoid tariffs. This is protectionism designed to raise prices of cars using materials from outside North America.

The USMCA also requires that 40 to 45 percent of an automobile’s content be made by workers earning at least 16 dollars per hour. Like all government-set wages, this requirement will increase prices and decrease employment.

The USMCA also requires Mexico to pass legislation recognizing the “right of collective bargaining.” In other words, this so-called free trade agreement forces Mexico to import US-style compulsory unionism. If the Mexican legislature does not comply, the US and Canada will impose tariffs on Mexican goods.

The USMCA also requires the three countries to abide by the International Labour Organization (ILO) standards for worker rights. So, if, for example, the bureaucrats at the ILO declared that Right to Work laws violate “international labor standards”’ because they weaken collective bargaining and give Right to Work states an unfair advantage over compulsory unionism states and countries, the federal government may have to nullify all state Right to Work laws.

The USMCA also obligates the three countries to work together to improve air quality. This sounds harmless but could be used as a backdoor way to impose costly new regulations and taxes, such as a cap-and-trade scheme, on America.

This agreement also forbids the use of currency devaluation as a means of attempting to gain a competitive advantage in international trade. Enforcement of this provision will be difficult if not impossible, as no central bank will ever admit it is devaluing currency to obtain a competitive advantage in international trade. Of course, given that the very act of creating money lowers its value, the only way to stop central banks from devaluing currency is to put them out of business. Sadly, I don’t think the drafters of the USMCA seek to restore free-market money.

The currency provision will likely be used to justify coordination of monetary policy between the Federal Reserve and the Mexican and Canadian central banks. This will lead to region-wide inflation and a global currency war as the US pressures Mexico and Canada to help the Fed counter other countries’ alleged currency manipulation and challenges to the dollar’s reserve currency status.

A true free trade deal would simply reduce or eliminate tariffs and other trade barriers. It would not dictate wages and labor standards, or require inter-governmental cooperation on environmental standards and monetary policy. A true free trade deal also would not, as the USMCA does, list acceptable names for types of cheeses.

Those of us who support real free trade must not let supporters of the USMCA get away with claiming the USMCA has anything to do with free trade. We must also fight the forces of protectionism that are threatening to start a destructive trade war. Also, we must work to stop the government from trying to control our economic activities through regulations, taxes, and (most importantly) control of the currency through central banking and legal tender laws.

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China Warns American Tariffs Are Opening Fire on the Entire World, and Itself

China: Commerce official Gao Feng said that US measures are essentially attacking global supply and value chains and that China will not bow down to threats and blackmail. US Customs and Border Protection officials are due to collect 25% duties on a range of products including motor vehicles, computer disk drives, parts of pumps, valves and printers and many other industrial components. China has threatened to retaliate with tariffs on hundreds of US goods, including agricultural products from states that backed Trump in the 2016 election, in a strategy to turn his base aganst him.

China’s Commerce Ministry warned on Thursday that new American tariffs amount to the United States “opening fire on the entire world, including itself” in a trade war.

“U.S. measures are essentially attacking global supply and value chains. To put it simply, the U.S. is opening fire on the entire world, including itself,” Commerce Ministry spokesman Gao Feng said.

“China will not bow down in the face of threats and blackmail and will not falter from its determination to defend free trade and the multilateral system,” he added.

Reuters reviews the measures due to take effect on Friday:

U.S. Customs and Border Protection officials are due to collect 25 percent duties on a range of products including motor vehicles, computer disk drives, parts of pumps, valves and printers and many other industrial components.

The list avoids direct tariffs on consumer goods such as cellphones and footwear. But some products, including thermostats, are lumped into intermediate and capital goods categories.

China has threatened to respond with tariffs on hundreds of U.S. goods, including top exports such as soybeans, sorghum and cotton, threatening U.S farmers in states that backed Trump in the 2016 U.S. election, such as Texas and Iowa.

“An American chemical company has been rushing its shipments to China to beat the clock. A Beijing steakhouse has dropped U.S. beef from its menu. And China has been shifting soybean purchases to Brazil, from which it bought nearly 30% more beans in May than it had a year earlier, according to research firm CEIC,” the Wall Street Journal adds, noting that Chinese importers have “mostly stopped buying U.S. soybeans.”

Bloomberg News reported on Wednesday there was “little sign of a last-minute deal” to avert tariffs on $34 billion in Chinese goods, making investors nervous about a crossfire of retaliatory measures between the U.S. and China. If the dispute escalates as predicted, it could ultimately affect half a trillion dollars in Chinese products, combined with a presumably comparable value of American goods sanctioned by China.

“The dispute is expected to ripple through global supply chains, raise costs for businesses and consumers and roil global stock markets, which have been volatile in anticipation of a prolonged trade fight between the United States and almost everyone else,” the New York Times wrote on Thursday.

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US on Brink of Trade War as Trump Announced $50 Billion in Tariffs Against Chinese Imports

President Trump is following through on his threat to implement tariffs on $50 billion in Chinese imports, and China has vowed to retaliate. Trump responded to China’s threat by pledging more tariffs. The tariffs are in response to an investigation that accused China of stealing US intellectual property in order to dominate the development of advanced technology. The US imported $505 billion of goods from China last year and exported about $130 billion, leaving a 2017 deficit of $376 billion.

In a statement Friday, Trump pledged additional tariffs if China follows through on the retaliation threats. The 25 percent duties are a response to the U.S.’s so-called Section 301 investigation earlier this year that accused China of stealing U.S. intellectual property in an effort to dominate the development of advanced technology.

“The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices,” Trump said in the statement.

China, the world’s No. 2 behind the U.S., has pledged to retaliate on U.S. exports including soybeans and pork. The U.S. imported $505 billion of goods from China last year and exported about $130 billion, leaving a 2017 deficit of $376 billion, according to government figures.

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Trump Rattles G7 Meeting with Irreverent Actions and Words

Quebec, Canada: Trump has angered the other leaders at the G7 conference by insulting Justin Trudeau, skipping the climate-change discussions, canceling a meeting with French President Macron, showing up late to a gender-equality breakfast, and suggesting that Russia be re-admitted to G7. Trump surprised German Chancellor Angela Merkel (and everyone else) when he floated the idea of scrapping all tariffs, barriers or subsidies. [We are mindful that President Trump’s decisions and appointments cannot be predicted by his impromptu actions and words.] -GEG

President Trump’s 24 hours in Quebec while attending the annual G-7 Summit was every bit as confrontational as we imagined they would be. The president has enraged his fellow world leaders, insulted Justin Trudeau, who’s hosting the summit in Quebec and whom Trump repeated referenced as just “Justin”, and skipped a meeting with French President Emmanuel Macron.

German Chancellor Angela Merkel has attacked him and vowed to challenge his “America First” trade agenda while also confronting him about his climate stance – something that might be difficult to do, since Trump left this morning after he said he would skip  discussions about climate change Saturday night.

Trump also showed up late to a gender-focused breakfast meeting, billed by the event’s Canadian organizers as a chance for leaders to “draft concrete actions for the G-7 to advance gender equality,” according to CBC. Isabelle Hudon, Canada’s ambassador to France, was making opening remarks when Trump and a flood of press pool members arrived and interrupted her.

As Trump quietly took his place between Christine Lagarde, head of the International Monetary Fund, and Lt.-Gen. Christine Whitecross, the Canadian head of the NATO college in Rome, Trudeau restated his welcome and Hudon repeated her remarks.

Then there were his controversial remarks. Early on, Trump suggested that the G-7 should consider readmitting Russia, which was kicked out in 2014 for its activities in Crimea. Trump instead blamed those on Obama. Also on Friday, Trump floated the idea of ending all tariffs and trade barriers between the US and its allies – a pitch that wasn’t exactly expected, according to Politico. Trump offered the proposal at the end of a “contentious” meeting on trade disputes. Most G-7 members remain furious with Trump over his decision to impose tariffs on aluminum and steel imports, and his threats to impose more trade restrictions. Merkel responded positively to Trump’s suggestion, saying she would consider it.

“We should at least consider no tariffs, no barriers — scrapping all of it,” Trump said, according to officials who were listening and taking notes.

Before leaving for his meeting with Kim Jong Un, Trump provided an update during a live press conference with Larry Kudlow and John Bolton. First he thanked Trudeau and praised Canada as a “beautiful country” before launching into a summary of issues starting with trade. Though he walked away without signing the US on to the traditional post-summit agreement (providing more fodder for critics who sneered about the G-6 + 1), Trump insisted that the G-7 was “tremendously successful” and despite trade tensions “relationships are outstanding.” He adds that the tariff situation is “going to change, 100 percent” as the US is “like the piggy bank that everyone robs”.

During his talk, Trump alternated between stream-of-conscious rambling about trade, Russia and North Korea and taking questions from reporters.

On trade:

“We had productive discussion on having fair and reciprocal” trade and market access.

“We’re linked in the great effort to create a more just and prosperous world. And from the standpoint of trade and creating more prosperous countries, I think they are starting to be committed to more fair trade. We as a nation lost $870 billion on trade…I blame our leaders and I congratulate leaders of other countries for taking advantage of our leaders.”

“If they retaliate they’re making a tremendous mistake because you see we have a tremendous trade imbalance…the numbers are so much against them, we win that war 1000 times out of a 1000.”

“We’re negotiating very hard, tariffs and barriers…the European Union is brutal to the United States….the gig is up…there’s nothing they can say.”

“We’re like the piggy bank that everybody’s robbing.”

“I would say the level of relationship is a ten – Angela, Emmanuel and Justin – we have a very good relationship. I won’t blame these people, unless they don’t smarten up and make the trades fair.”

On eliminating trade barriers:

“That’s the way it should be. No tariffs, no barriers – no subsidies.”

“You go tariff free you go barrier-free you go subsidy-free – that’s the way we learned it at the Wharton School of Finance. We can’t have an example where the US is paying fees of 270%.”

Then “Worst, Fake News” CNN asked President Trump how disastrous his trade policies are and how his actions are hurting relationships… to which he replied very informatively, ending “so you can tell that to your fake friends at CNN…”

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Trump Imposes Tariffs on Steel and Aluminum Imports from Mexico, Canada and the EU


President Trump is imposing a new 25% tariff on steel and a 10% tariff on aluminum imported from from Mexico, Canada, and the European Union. Mexico indicated it will retaliate against US agriculture products, Canada announced a new set of $16 billion in tariffs against US goods, and the EU will target bourbon and motorcycles made in the US. It is believed that China will be next on the list. -GEG




Trump proposes $50 Billion in Tariffs Against China for Stealing Intellectual Property


President Trump is proposing 25% tariffs on 1300 Chinese imports which, if actually collected, would be $50 billion. This is said to be in retaliation for theft of intellectual property from US companies. The list of imports includes steel and metals used in oil and gas pipelines as well as nuclear materials and reactors for power plants. This could upset the US nuclear industry that is planning to build 100 nuclear plants in China by 2030.

[If this proposal is implemented, the quantity of imports will drop as their prices rise to cover the added cost of import tax. US companies will pay the tariff as part of higher prices.  Some of this then will be passed back to China in the form of higher prices for construction of its nuclear plants. Part will be paid by Americans for higher prices for domestic products that use the imported materials. We expect that this proposal will not materialize as currently being discussed.] -GEG

The Trump administration has proposed slapping retaliatory tariffs on 1,300 Chinese imports in response to the country’s continued theft of intellectual property from U.S. companies.

That lists includes, steel and metals used in oil and gas pipelines as well as nuclear materials and reactors for power plants. The proposed tariffs would impact $50 billion worth of imports, according to the U.S. Trade Representative.

Trump has a more aggressive stance on trade with China than his predecessors, arguing the gaping trade deficit with the Asian giant needs to be closed. Trump also criticized China’s theft of intellectual property.

Now, Trump is targeting nuclear energy industry imports from China, including uranium (U-235), reactor components and machinery to separate isotopes. The U.S. gets a very small percentage of its uranium from China, so the tariffs in this area probably won’t have much effect.

What could upset the U.S. nuclear industry is retaliation from China, which is planning to build at least 100 nuclear plants through 2030 to reduce its reliance on coal power. China is largely dependent on foreign imports of uranium and equipment to build nuclear plants.

China is trying to become more self-sufficient in nuclear technology, but “ample opportunities exist for U.S. industry, including fuel cycle, nuclear components, and services related to nuclear power in China,” according to the U.S. Commerce Department.

U.S. companies supplied China with about 30 percent of its enriched uranium imports in 2015, according to government data.

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