The Tariff Threat Against Mexico Could Be Trump's Riskiest Bet Yet

On May 30, U.S. President Donald Trump threatened to impose a 5 percent tariff on all goods from Mexico starting June 10 unless the country takes "substantial" steps to stem the flow of migrants crossing the U.S. border. According to Trump's statement, that tariff would continue to rise by 5 percentage points on the first day of each following month until eventually capping off at 25 percent in October, where it would remain until Washington deems enough has been done to counter northbound migration flows from Central America. The Big PictureU.S. President Donald Trump has made immigration a clear priority as he gears up for his re-election in 2020. After shutting down the government in December in a bid to fund his U.S.-Mexico border wall, Trump is now threatening an unprecedented tariff hike on Mexican imports in the hopes of getting Mexico City to stem the increasing number of Central American migrants showing up at Washington's southern doorstep. However, combined with the president's ongoing disputes with other key U.S. trade partners, a full-blown trade war with Mexico could be the final straw that pushes the United States into a recession. What's the likelihood Trump will follow through?

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