Talk of a U.S.-Mexico trade war is hitting the stock market hard on Friday.
This U.S.-Mexico trade war has President Donald Trump planning to introduce a 5% tariff on goods from Mexico. This will start on June 10 and will increase by 5% each month until October. This will have the tariffs reaching a total of 25%.
Why exactly is President Trump planning to start a U.S.-Mexico trade war? The President of the United States is pushing for the tariffs on Mexico in retaliation to illegal immigrants crossing the border into the U.S.
As a result of the U.S.-Mexico trade war news, the stock market has been taking a hit today. This includes the dropping 300 points this morning. The news has Mexican stocks falling and also saw the peso decline in value.
Some analysts are expressing concerns about the U.S.-Mexico trade war. This includes worries about President Trump using tariffs in reaction to non-economic issues. Others worry that the trade war with Mexico will be too much since the U.S. is already in a trade war with China as well, reports CNN Business.
Here is President Trump’s Tweet about the U.S.-Mexico trade war.
“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, at which time the Tariffs will be removed. Details from the White House to follow.”
As of this writing, William White did not hold a position in any of the aforementioned securities.