Imposing Duties To Address the Situation at Our Southern Border

What it means

This order imposes a 25% tariff on all Mexican imports starting February 4, 2025, citing Mexico's failure to address illegal immigration and drug trafficking across the southern border. The tariffs will remain until Mexico takes "adequate steps" to cooperate on enforcement actions.

Expected impact

• Higher prices for American consumers on Mexican imports including vehicles, electronics, produce, and manufactured goods
• Potential economic pressure on both the US and Mexican economies due to the integrated nature of North American supply chains
• Possible diplomatic tensions between the US and Mexico, with the order explicitly threatening additional measures if Mexico retaliates
• Incentive for Mexico to increase border security cooperation to have the tariffs removed
• Financial strain on businesses that rely heavily on Mexican imports or components