Effect of potential Mexico tariffs on US companies

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Donald Trump is "deadly serious" about slapping tariffs on imports from Mexico, his chief of staff said on Sunday, even though the president "intentionally left the declaration sort of ad hoc" amidst fears of damage to the United States economy if he follows through on his threat.

U.S. President Donald Trump told Mexico to stop the "invasion" and "onslaught" of migrants entering the United States illegally, or face rising U.S. import tariffs which would cause the loss of foreign investment.

"Unlike much of Trump's agenda, his tariffs don't have a constituency - they're just his personal obsession", Paul Krugman, the Nobel Laureate and famed economist, said in a tweet Monday.

U.S. President Donald Trump on Tuesday warned fellow Republicans in Congress not to block his efforts to impose tariffs on Mexico as part of his broader immigration fight amid reports that lawmakers are considering steps to block his latest trade salvo.

Trump proposed an increase of five percentage points per month up to October 1 when the rate reached 25 percent and would stay there, he said, "unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory".

In a rare confrontation, Republican senators declared deep opposition Tuesday to President Donald Trump's threatened tariffs on all goods coming into the USA from Mexico.

Lopez Obrador was asked in the news conference whether he would allow Mexico to become a so-called safe third country, which would allow U.S. authorities to send migrants back to Mexico and make them apply for asylum there.

Mexico is preparing a proposal on immigration to present to U.S. officials at a meeting in Washington on Wednesday, but Trump said the talks might not be enough.

The U.S. -Mexican talks begin on Monday with a meeting between Mexican Economy Secretary Graciela Marquez and U.S. Commerce Secretary Wilbur Ross. "I don't even want to think about it", he told reporters Monday.

Some Trump advisers think that the president likes negotiating from a position of strength and that he believes he will have more leverage over Mexico if the tariffs are in position.

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"It would be my hope that they're gonna work out things so the tariffs don't go into effect", Grassley said.

Trump said that sort of congressional action was unlikely.

China retaliated on Friday with new tariffs on American imports after the Trump administration elevated tariffs on Chinese goods. Wilson says higher tariffs would increase supply costs and hurt auto sales, a double whammy.

Kia exported about 142,000 vehicles from Mexico to the USA a year ago. "The Tariff will gradually increase until the Illegal Immigration problem is remedied", Trump wrote.

Both leaders tried to describe relations - as May leaves office later this week - as rock solid amid Trump's "America first" foreign policy and the U.K.'s coming government transition and political turmoil. He suggested the government could seal its southern border with Guatemala, crack down on domestic terrorist organizations and make Mexico a safe place for migrants seeking to apply for asylum. Prices increased everywhere after the USA raised tariffs on imports from China.

The Trump administration has listed three actions it wants from Mexico: strengthening its southern border with Guatemala; stepping up interdiction of busses filled with migrants being smuggled through its territory; and agreeing to accept asylum seekers instead of allowing them to proceed to the US border.

The move was aimed at pressuring Mexico, but it also spooked global markets and put a joint trade pact between the two countries and Canada further in doubt.

"We intentionally left the declaration sort of ad hoc", he said.

Other prominent Republicans were more hesitant to show their support for the president's proposal. Many seek asylum in the USA when they cross the border.

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