Donald Trump is threatening a $17 billion tax on consumers and businesses in the U.S. if Mexico doesn’t take drastic action to stop migrants from arriving at the U.S. border—and the amount could grow dramatically. Trump tweeted Thursday night that he would impose a 5% tariff on all imports from Mexico starting June 10 if the Mexican government doesn’t take action against Central American migrants traveling toward the U.S., a tariff that would rise to 10% on July 1 and continue rising each month until it hits 25%.
Trump previously threatened to close the border entirely or put a 25% tariff on auto imports, both threats that he backed off of. Now we have the threat of a 5% tariff that could swiftly rise to 25% on all goods, threatening to shut down the U.S. auto industry as well as raising food prices and more. It would also further endanger the already questionable passage of Trump’s NAFTA renegotiation, supposedly one of his top trade priorities.
Senate Finance Committee Chair Chuck Grassley is not pleased, saying in a statement that “Trade policy and border security are separate issues. This is a misuse of presidential tariff authority and counter to congressional intent.” But, perhaps showing the most likely direction of the Republican Party as a whole, Sen. Lindsey Graham executed a quick about-face from his previous opposition to tariffs, saying now that “I support President Trump’s decision to impose tariffs on Mexico until they up their game to help us with our border disaster.”