The President of the United States Donald Trump raised duties on goods from Mexico. The American leader demands that Mexico strengthen the fight against illegal migration to the United States.
Since June 10 this year, the United States introduces duty amounting to 5 %, on all goods from Mexico. The United States will then gradually raise the trade barrier until the flow of illegal migrants from Mexico ceases. According to Trump, if the situation does not change, the duty will increase to 25 % by October this year.
The representative of the Ministry of Foreign Affairs of Mexico Jesus Seade said that the new tariffs would hit hard on bilateral trade between Mexico and the United States. Mr. Seade noted that Mexico would have to respond with symmetrical measures to the US. Mexican President Andrés Manuel López Obrador said that his country did not need a confrontation with a neighbor.
In 2018, Mexico was the second country in the world in terms of the exports of goods to the United States. This state exported to the United States products having 346.5 billion dollars' worth. Large American corporations (including Ford, General Motors, Coca Cola) have production facilities in Mexico.
On the morning of May 31, the EUR/USD pair is traded near 1.1138.