After 3 long years of inaction and with Congress gridlocked with liberal democrats who hate their own country and refuse to build the wall, President Trump finally took significant executive action to end the invasion of America by the hoards of illegal immigrants from the south. He issued Mexico an ultimatum: end the illegal human flow or face retaliatory tariffs on all Mexican imports by land, sea, and air.
Starting June 10 a 5% tariff will be imposed. Then if the issue isn't fixed by July 1 this will be raised to 10%, and then 15% on August 1, 20% on September 1, and then cap at 25% on October 1 and remain in place indefinitely. If at any point Trump's demands are fulfilled all the tariffs will be removed immediately.
Trump first made his bombshell announcement on Twitter, with additional details later announced in an official White House statement.
The following day all hell broke loose. The stock market fell nearly 300 points from an already downward trend, the price of gold went up, reflecting investors' panic about the announcement, and politicians came out left and right to denounce Trump's plan. Lindsey Graham 2.0 was one of the exceptions who actually had a spine.
In an official statement, the president of Mexico unloaded on Trump with emotionally driven rhetoric about America being a country that welcomes all immigrants and the statue of liberty and so on. After he was done putting up a tough front, he announced sending a delegation to Washington to negotiate, headed by the Mexican foreign minister himself. A summit between the two leaders is reportedly in the works as well.
The worst case scenario is that no deal is reached, illegal immigrants, continue to flow, and the full 25% tariff is enforced. The media is currently trying to fearmonger, like they usually do, about the economic effects this will have on ordinary Americans; CNBC estimated the total impact to be as much as 93 Billion dollars. But before you start panicking yourself remember that this figure was calculated very crudely by taking the total US imports from Mexico and multiplying it by 25%. The potential change in consumer habits, as well as the businesses who might move production back to the US in that scenario, is not accounted for. Not to mention that the products most affected by the tariffs are Ford, GM automobiles and *squints* guacamole. Mexican made automobiles were never good, to begin with, so that won't hurt anyone. Now as for the people who say they cannot live without guacamole, I have other bad news for them.
This whole situation is a result of a Congress too busy with partisan investigations to actually deliver what the people want, namely the wall on the southern border. They also refuse to change our ridiculous catch and release laws which incentivize the border jumpers in the first place. This kind of executive action, along with the emergency border wall funds which is now stalled in the courts, is one of the few actions the president can take on his own. A good idea that was floated around as far back as 2015 is to tax remittances to Mexico, that is the money all immigrants regardless of legality send to their home countries to "help their families". A tax of up to 100% on those remittances, which totaled 25 billion to Mexico in 2015, will disincentivize many of those immigrants and provide additional government revenue.
As long as Trump doesn't back down and cave to pressure in the coming weeks, we might finally see a giant bandaid on the gaping hole we have in the south.