Is Trump’s Tough Talk on Mexico Tariffs Just a Publicity Stunt?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
On May 30, President Trump threatened the imposition of tariffs on Mexican imports to the United States. President Trump announced that a 5% tariff could take effect June 10. The tariff would increase to 10% on July 1 and increase by 5% each month until it reaches 25% on October 1, 2019. Trump, increasingly frustrated with migrants from Central America reaching the U.S. border, wants Mexico to do more to enforce its southern border. Given the economic stakes for both countries, it is likely that an agreement may be reached between the United States and Mexico before tariffs are imposed. What are the pros and cons of implementing tariffs on imports from Mexico?