U.S. Chamber of Commerce Poised to Legally Block Trump’s New Mexico Importation Tariffs

On the same day (May 30, 2019) when the U.S. – China Trade War negotiations broke down, U.S. president Donald Trump announced that starting June 10, 2019, he will be imposing a five percent (5%) tariff on Mexico importations. The said tariff will increase by another five percent (5%) every month up to October, 2019 until it reaches a max of twenty-five percent (25%).

The uproar against the new tariff imposition is so resounding that no less than the U.S. Chamber of Commerce (USCC) intends to sue Donald Trump. John Murphy, USCC Senior Vice President Of International affairs came out with an announcement that his group is constrained to make a move against the new Trump tariff.

As it is, leading business organizations are already discussing filing a lawsuit against the White House, to which actions on how they will go about it will be decided this Monday (June 03, 2019.) Mr. Murphy commented,

“Imposing tariffs on goods purchased from Mexico is exactly the wrong move… American families and businesses will be paying the tariffs, without solving the very real problems at the U.S. – Mexico border.”

Trump said that imposing tariffs on Mexico is his administration’s way of pressuring Mexico President Andres Manuel Lopez Obrador to step up with the blocking of Central American migrants to prevent groups from crossing into the U.S border. Trump intends to impose the Mexico tariff until such time the issue concerning the surge of illegal immigrants passing through Mexico, has been resolved.

USCC Analysis of the New Tariff Impact on U.S. States that Import Goods from Mexico

In 2018, imported goods from Mexico totaled $346.5 billion. Should the Trump administration go ahead with the five percent (5%) tariff on Mexico importations, the USCC estimates that American consumers and businesses will be confronted with as much as $17 billion in tax increases.

Yet that is only the initial onus that taxpayers have to shoulder. Since the planned tariff is set to gradually increase at five percent (5%) each succeeding month to reach 25% by October, 2019, the potential tax burden could soar to $86 billion. Trump intends to impose the 25% tariff until Mexico does something to stop the flow of illegal immigrants into the U.S. border.

Businesses in the U.S. states of Texas, Michigan, California, Illinois, Ohio and Arizona regard Mexico as a top trading partner, as importing goods coming from the country has contributed to their economic growth and job opportunities. These states will be the hardest hit, if businesses and consumer will be constrained to pay additional taxes on the goods they import from Mexico.