---
title: "Tariff Insider: June 3, 2019"
description: "The latest news on the U.S.'s announcement of a new tariff on Mexico imports, and China's implementation of their reactionary tariffs on U.S. goods."
language: en
canonical: https://www.flex.thisisbrew.com/blog/tariff-insider-june-3-2019/
lifecycle: live
---

# Tariff Insider: June 3, 2019

## U.S. Announces Tariffs on Mexico Imports while China Implements Reactionary Tariffs on Goods from the U.S.

**U.S. Prepares to Implement Tariffs on Mexico Imports**

*June 12, 2019 update:* Tariffs on Mexico goods have been ["indefinitely suspended."](https://www.wsj.com/articles/trump-says-u-s-has-reached-deal-with-mexico-11559954306?mod=e2fb&fbclid=IwAR1AOUW_AOZ8uex8X_ro5nd4vyxkunK0EzH9FR3dFbWqvx--6AcFvW9EmrM)

Wrapping up a tumultuous few weeks of tariffs on China, the Trump administration has warned that a **5% tariff** would be imposed on goods imported from Mexico, **effective June 10th**. The tariff was announced on the evening of May 30th in an effort to push Mexico to address immigration issues. With that announcement came a heads up from the White House that if Mexico [“should choose not to cooperate on reducing unlawful migration,”](https://www.whitehouse.gov/briefings-statements/statement-president-regarding-emergency-measures-address-border-crisis/) tariffs will be increased as follows: 

- **10%** on July 1st, 2019

- **15%** on August 1st, 2019

- **20%** on September 1st, 2019

- **25%** on October 1st, 2019

If the tariff reaches 25%, it would then remain at 25% until Mexico “substantially stops the illegal flow of aliens coming in through its territory,” [according to an official statement from the White House](https://www.whitehouse.gov/briefings-statements/statement-president-regarding-emergency-measures-address-border-crisis/).

President Trump implemented the tariff under the International Emergency Economic Powers Act of 1977, which gives the President [“the authority to regulate a variety of economic transactions following the declaration of a national emergency.”](https://fas.org/sgp/crs/natsec/R45618.pdf) It has been used in the past to restrict exports, limit foreign investment in U.S. companies and impose tariffs on imports into the U.S.

[According to Bloomberg](https://www.bloomberg.com/news/articles/2019-05-30/trump-to-impose-5-tariff-on-mexico-over-illegal-immigration?cmpid=BBD053119_OUS&utm_medium=email&utm_source=newsletter&utm_term=190531&utm_campaign=openamericas), the tariff on Mexican imports is expected to have a larger impact on American consumers than the Chinese import tariffs, because [“price increases for items like food are more directly observable.”](https://www.bloomberg.com/news/articles/2019-05-30/trump-to-impose-5-tariff-on-mexico-over-illegal-immigration?cmpid=BBD053119_OUS&utm_medium=email&utm_source=newsletter&utm_term=190531&utm_campaign=openamericas)

**Meanwhile, China Implements Tariffs on U.S. Imports**

In response to the U.S. tariff hikes on Chinese imports, China has raised tariffs for [thousands of items](https://www.bloomberg.com/news/articles/2019-05-31/china-tariff-retaliation-kicks-in-as-trade-war-ratchets-up) imported from the U.S. Originally announced on May 13th, these tariffs will apply an additional 20% or 25% on more than 50% of the [U.S. products targeted](https://www.reuters.com/article/us-usa-trade-china-tariffs/chinas-retaliatory-tariffs-on-u-s-goods-take-effect-amid-standoff-idUSKCN1T11ZQ).

We’ll continue to monitor the tariff situations in both Mexico and China and provide updates in the [Tariff Insider](https://www.flexport.com/blog/category/tariff-insider).

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*This is a markdown version of [https://www.flex.thisisbrew.com/blog/tariff-insider-june-3-2019/](https://www.flex.thisisbrew.com/blog/tariff-insider-june-3-2019/) for AI/LLM consumption.*