Republican presidential candidate Donald Trump has outlined a controversial trade proposal, pledging to impose tariffs as high as 75% on Mexican imports unless Mexico takes stronger action to stop illegal immigration.
At a rally in Raleigh, North Carolina—a key swing state—Trump emphasized his stance on immigration and trade, pledging a 25% tariff on all Mexican goods as a penalty if Mexico does not help reduce the flow of migrants and drugs into the U.S. “On day one, or even sooner, I will notify [Mexico’s president] Claudia Sheinbaum that if they don’t stop this influx of criminals and drugs into our country, I will immediately impose a 25% tariff on everything they send to the United States,” Trump declared.
He insisted that the tariff would be effective, stating that if a 25% rate fails to produce results, he would increase it to 50% and then to 75%. This plan would challenge the United States-Mexico-Canada Agreement (USMCA), a trade deal in effect since July 2020, which currently allows most goods to cross the U.S.-Mexico border duty-free.
Mexico is one of America’s top trading partners, ranking as the second-largest buyer of U.S. goods (after Canada) and the second-largest supplier of goods to the U.S. (after China), according to the Office of the United States Trade Representative.
Trump has further proposed a broad set of tariffs, including a 20% tax on all imports, a 60% tariff on Chinese products, and a 100% tariff on all cars made in Mexico. He also suggested replacing the federal income tax with tariffs, a controversial idea fiscal experts argue would not generate enough revenue to replace lost income tax.
This plan could also shift the tax burden away from wealthier individuals, who pay higher income taxes, and place it on lower-income families, who spend a larger portion of their income on essential goods.
