Trump's move has greatly strengthened efforts to control illegal immigration. Despite measures such as building a border wall, he has tried to prevent thousands of Central American immigrants from entering the United States through Mexico, but the number of immigrants continues to increase.
Trump suddenly announced the decision on Twitter and then issued a statement, which was a direct challenge to Mexican President Ovlado and seemed to surprise the Mexican government.
Both the United States and Mexico depend heavily on cross-border commodity flows, and Trump's action raises the risk that relations between the two countries may deteriorate, and opens up a new front before the trade war with China has subsided.
Unless Mexico takes immediate action, he said, the U.S. tariff increase will begin on June 10, starting with a 5% tax rate and then rising monthly until October 1 to 25%.
"If Mexico takes effective action to alleviate the crisis of illegal immigration, the tariff will be abolished after we have identified and judged separately," Trump said.
Trump's announcement shocked investors who feared that worsening trade frictions could hurt the global economy. As soon as the news came out, Mexican pesos, U.S. stock index futures and Asian shares all fell sharply, including the share prices of Japanese automakers exporting cars from Mexico to the United States.
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