President Donald Trump’s announcement that he was going to enact a 5 percent tariff on all imports from Mexico unless Mexico steps up and stops Central American migrants from crossing its southern border. The tariff is set to go in effect on Monday June 10th, it would increase by 5 percentage point each month until October at 25 percent.
….Coyotes and Illegal Immigrants, which they can do very easily, or our many companies and jobs that have been foolishly allowed to move South of the Border, will be brought back into the United States through taxation (Tariffs). America has had enough!
— Donald J. Trump (@realDonaldTrump) June 2, 2019
Mexico remains one the United States largest markets for exports and is the largest market in tonnage and value for rice. This is raising concerns among rice farmers. Bobby Hanks, a Louisiana miller and chairman of the USA Rice International Trade Policy Committee stated earlier this week.
“This is a pretty delicate time for trade between the U.S. and Mexico, and we hope this new tariff can be avoided.”
The President’s announcement last week coincided with the submission of the U.S. Mexico Canada Agreement. Hanks added,
“Getting USMCA passed and adopted prior to current agreements going away is vital to the rice industry and a top priority for us. All the more reason to ease tensions with our number one export market.”