President Trump has threatened he’ll hit Mexico with tariffs unless its government does something to help stop illegal immigration.
But this could come with an economic cost to the U.S. also, as Mexico is our largest trading partner.
The president is threatening a 5 percent tariff on all imports from Mexico beginning June 10.
That would increase 5 percent each month up to a permanent level of 25 percent on Oct. 1.
“We are being overwhelmed,” said Peter Navarro, President Trump’s trade advisor. “These are real costs on the American nation that Mexico could take care of if they choose to act.”
Automobiles are the largest category of Mexican-made products sold in the U.S.
And so are automobile parts.
The manager of one local O’Reilly’s tells us they have enough parts in stock to last three or four months.
The impact of the new tariffs won’t be felt until that supply runs out.