Mexico Faces New Tariff on All Goods

In a move to halt illegal immigration, President Trump has said that the U.S. will impose a 5% tariff on all goods coming into the U.S. from Mexico beginning June 10. In a tweet, he threatened to increase the tariff rate gradually until “the illegal immigration problem is remedied, at which time the tariffs will be removed.”

The U.S. imports close to a half-billion dollars in flat glass, mirror, aluminum fenestration and related products from Mexico, according to International Trade Centre’s most recent calculations (based on U.S. Census Bureau data).

The parent company of Vitro Architectural Glass, a major supplier of float glass in the U.S., is based in Mexico. However, the company manufactures glass in the U.S. since purchasing the assets of PPG’s glass business in 2016. Saint-Gobain also manufactures glass in Mexico. It’s unclear how much of that glass is shipped to the U.S. Saint-Gobain declined to comment on how the 5% tariff could impact the company.

The tariff threat comes two weeks after the U.S. agreed to lift steel and aluminum tariffs initially imposed on Mexico and Canada last year, which was seen as a step toward ratifying the U.S. Mexico Canada Agreement, the proposed replacement for the North American Free Trade Agreement.

In a letter released Thursday night, Mexican President Andrés Manuel López Obrador said he will send a representative to Washington, D.C., today to reach an agreement that would benefit both nations. Jesús Seade, Mexico’s top diplomat for North America, told the Mexican media that if the tariffs were to be imposed Mexico must respond forcefully.

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