Trump Says U.S. Will Hit Mexico With 5% Tariffs on All Goods – The New York Times
In the statement, Mr. Trump said he was using authorities granted to him by the International Emergency Economic Powers Act, which gives the president broad power to take action to address any “unusual or extraordinary threat.”
But an across-the-board tariff on all Mexican goods would exact a serious toll on American consumers and corporations, and is likely to generate significant opposition among businesses.
Rufus Yerxa, the president of the National Foreign Trade Council, which represents the nation’s largest exporters, called the move “a colossal blunder.” “If not reversed, it will destabilize all our trade relationships while causing huge damage to our own industries,” he said.
The United States imports more from Mexico than any other country except China, including billions of dollars of cars, machinery, fuel, medical devices and many other goods. The country is also the United States’ largest supplier of agricultural imports, including cucumbers, grapes, beer and avocados.
The nations also share complex cross-border supply chains. Many of the products that Mexico sends to the United States, including cars and clothes, are made with parts or materials that were originally made in the United States.
Mexico’s deputy foreign minister for North America, Jesús Seade, said at a hastily arranged news conference on Thursday that Mr. Trump’s announced tariffs would be “disastrous” and suggested Mexico could retaliate against American products.
“This threat, if put into action, would be very serious,” he told reporters. “If it comes to pass, we — in my opinion — should respond in an energetic way.”