Summary: The markets shuddered last week following the announcement of potential tariffs—starting at 5 percent and increasing to 25 percent—on Mexican imports to the US as soon as June 10. These tariffs would cost US businesses billions annually, disrupt trade with Mexico and could delay the passage of USMCA. Because the economic damage would be so devastating, the administration seems unlikely to follow through with the threat—particularly if this week’s discussions with Mexico go well.
