5% Tariff on Imports from Mexico Starting June 10th
On Thursday, May 30, 2019, President Trump tweeted, “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. The Tariff will gradually increase until the Illegal Immigration problem is remedied…”
A White House statement that followed the tweet explained that to address the emergency at the Southern Border, Mr. Trump will impose a 5 percent tariff on all goods imported from Mexico beginning June 10, 2019. If the crisis persists, the tariffs will be raised to 10 percent on July 1, 2019. Similarly, if the crisis is not resolved, the tariffs will continue to raise by 5 percent on the first day of each month for the following 3 months (August, September and October).
The tariffs will permanently remain at the 25 percent level unless the crisis at the border is resolved. Mexico exported an estimated $346.5 billion in goods to the United States in 2018.
The 1977 International Emergency Economic Powers Act allows the imposition of tariffs on all imports from certain countries if there is a “national emergency.” On February 15, 2019, President Trump declared a national emergency along the Southern Border of the United States. A Congressional Research Service report explained that the 1977 Act has never been used before “to place tariffs on imported products from a specific country.” The report confirmed that it could be interpreted as giving the white House that authority.
U.S. Customs requires the payment of duties, taxes and fees within 10 business days from the release of goods. Therefore, if your shipment is released on June 10, 2019, the duties, taxes, and fees would be due on June 24, 2019.
If you have any questions, please feel free to contact your Norman Krieger representative.