Trump announces new Mexican tariffs in response to migrants

WASHINGTON (AP) — In a surprise announcement that could compromise a major trade deal, President Donald Trump announced Thursday that he is slapping a 5% tariff on all Mexican imports, effective June 10, to pressure the country to do more to crack down on the surge of Central American migrants trying to cross the U.S. border.

He said the percentage will gradually increase — up to 25% — "until the Illegal Immigration problem is remedied."

Trump made the announcement by tweet after telling reporters earlier Thursday that he was planning "a major statement" that would be his "biggest" so far on the border.

"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," he wrote, "at which time the Tariffs will be removed."

Trump has accused the Mexican government of failing to do enough to halt the flow of Central American migrants who have been flowing to the U.S in search of asylum from countries including El Salvador, Honduras and Guatemala. And he has been itching to take increasingly radical, headline-grabbing action on the issue, which he sees as critical to his reelection campaign because it energizes his base.

But the sudden tariff threat comes at a peculiar time, given how hard the administration has been pushing for passage of the United States-Mexico-Canada Agreement that would update the North American Free Trade Agreement. It also comes less than two weeks after Trump lifted import taxes on Mexican and Canadian steel and aluminum, a move that seemed to clear an obstacle to passage of his North American trade deal.

The White House sees the deal, which was agreed to by the three nations'...