Republicans and business bodies criticised Donald Trump’s proposed 5 per cent tariff on Mexican imports on Friday amid fears it could force up the price of cars and food for Americans.
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The US president said the tariff will be levied on all goods imported from Mexico on June 10 unless the country’s leaders lower the number of illegal migrants crossing into America.
He warned that the tariff would ramp up every month, eventually reaching 25 per cent by October unless illegal migrant crossings were “dramatically reduced”.
“Mexico cannot allow hundreds of thousands of people to pour over its land and into our country – violating the sovereign territory of the United States,” Mr Trump said.
“If Mexico does not take decisive measures, it will come at a significant price.”
America imported almost $350 billion worth of goods from Mexico last year, including $93 billion worth of cars and $26 billion of agriculture products.
REUTERS/Lucy Nicholson
The move triggered criticism because it will be American importers who pay the tariff and the cost could be passed on to US consumers in the form of higher prices.
Chuck Grassley, the Republican joint chairman of the Senate Finance Chairman, warned the move was a “misuse of presidential tariff authority”, saying trade and border security were “separate issues”.
Mr Trump plans to use powers granted to him through the International Emergency Economic Powers Act to implement the tariff, effectively bypassing Congress.
Neil Bradley, the executive vice president at the US Chamber of Commerce, called imposing tariffs “exactly the wrong move”.
He added: “These tariffs will be paid by American families and businesses without doing a thing to solve the very real problems at the border.”
Mr Trump tweeted on Friday:
Mexico has taken advantage of the United States for decades. Because of the Dems, our Immigration Laws are BAD. Mexico makes a FORTUNE from the U.S., have for decades, they can easily fix this problem. Time for them to finally do what must be done!
— Donald J. Trump (@realDonaldTrump) May 31, 2019
Andres Manuel Lopez Obrador, the Mexian president, criticised Mr Trump’s “America First” approach in a letter about the tariff but played down the confrontation, calling for a peaceful and negotiated solution.