Escalated Tariffs Imposed on Mexico Goods

June 2019

The information in BDO alerts is dependent on tax policies at the time they are published, and the status of U.S. tariffs has been changing quickly. As of June 7, the U.S. tariffs on Mexican imports have been suspended. To find the latest information on this topic, read Tariffs Indefinitely Suspended on Mexican Imports.

On May 30, 2019, the White House announced that, starting June 10, 2019, the U.S. will impose a 5 percent tariff on all imports from Mexico. Such action is authorized by the International Emergency Economic Powers Act (IEEPA), which has previously been used to block transactions and freeze assets to deal with unusual and extraordinary threats to U.S. national security, foreign policy, or the economy of the U.S.
President Trump stated that, if Mexico fails to take sufficient action, the new tariffs will be raised each month in accordance with the following schedule:
  • 10 percent on July 1, 2019;
  • 15 percent on August 1, 2019;
  • 20 percent on September 1, 2019;
  • 25 percent on October 1, 2019.
According to the President, “tariffs will permanently remain at the 25% level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.”
The new tariff announcement came shortly after the U.S. lifted the Section 232 tariffs on steel and aluminum imports from Mexico. This decision now adds more uncertainty to the passage of the U.S.-Mexico-Canada (USMCA) Free Trade Agreement.
For more information, please contact a BDO Customs and International Trade Services professional.

Damon V Pike
  James Pai
Senior Manager

Yun Gao
  Jay Cho