The markets opened 270 points on Friday morning after President Trump had threatened high rates to Mexico.
Mexican president Andrés Manuel López Obrador meanwhile sent his foreign minister to Washington to try and prevent the president from following his threat to impose 5 percent rates on Mexican goods on 10 June.
Trump said he would gradually raise them until Mexico tackles immigration harder.
& # 39; On June 10, the United States will impose a 5% rate for all goods coming from Mexico to our country, until illegal migrants come through Mexico and to our country, STOP. The Rate will gradually increase until the illegal immigration problem is remedied, & he said in the Thursday evening tweets, & # 39; after which the rates are removed. Details of the White House to follow. & # 39;
The markets opened 270 points on Friday morning after President Trump had threatened high rates to Mexico
Trump said he would gradually raise them until Mexico tackles immigration harder
In a surprise announcement that could jeopardize an important trade agreement, Trump tweeted the news of the rate on Thursday in an effort to pressure Mexico to do more to push the wave of migrants trying to cross the border with the United States to fight.
Rates start on June 10 with 5 percent, then jump to 10 percent on July 10, 20 percent on August 1, 20 percent on September 1 and up to 25 percent on October 1, unless Mexico is taking steps to stop the storm.
Trump's traitor to take action – which he had vaguely presented the day before as an important announcement at the border – caused markets to collapse on Friday.
While the Dow collapsed, the president kept tweeting about immigration and emphasized that he was right.
& # 39; Difficult to believe that with the Crisis on the Border the Dems cannot be repaired quickly and easily. Would solve the problem, but they want Open Borders, which equals crime! & # 39; he said.
Trump tweeted: "Mexico has been using the United States for decades. Because of the Dems, our immigration laws are bad. Mexico is a US CONTINUE, they have been able to solve this problem for decades. Time for them to finally do what they should to be done! & # 39;
& # 39; The Rate will gradually increase until the problem of illegal immigration is corrected, at which time the rates will be removed. & # 39;
In a White House follow-up statement, Trump said the rates would stay at 25 percent until & # 39; Mexico would substantially stop the illegal influx of aliens & # 39 ;.
Trump's move was a dramatic escalation of his struggle to control a tidal wave of illegal immigrants, despite his efforts to build a border wall and take other steps.
US officials said that 80,000 people are being held in custody with an average of 4,500 arriving daily.
& # 39; If the illegal migration crisis is alleviated by effective measures taken by Mexico, which are determined in its sole discretion and judgment, the rates will be abolished, & # 39 ;, Trump said.
Mexico & # 39; s Deputy Foreign Minister for North America, Jesus Seade, said Thursday that it would be disastrous for Trump to continue his threats to impose rates.
& # 39; It would be very serious … If this is entered, we must respond vigorously, & # 39; said Seade.
Trump's announcement came one day after border agents in El Paso, Texas, held the largest group of migrants they had ever encountered: 1,036 people. They are pictured above after being held
The group of 1,036 people passed the Rio Grande river from Ciudad Juarez, Mexico in the early morning hours of Wednesday
Trump said he was acting under the powers granted to him by the International Emergency Economic Powers Act.
He campaigned for election in 2016 on a vow to fight illegal immigration and is frustrated that power has increased in recent months.
& # 39; Mexico & # 39; s passive cooperation in allowing this mass invasion constitutes an emergency and an extraordinary threat to the national security and economy of the United States, & # 39; Trump said in the statement.
"Mexico has very strong immigration laws and could easily stop the illegal flow of migrants, including by sending them back to their homeland," he said.
White House acting chief of staff Mick Mulvaney, in a conference call with reporters, asked which products from Mexico could be affected by the rates, said: & # 39; All. & # 39;
Trump has accused the Mexican government of not doing enough to stop the flow of Central American migrants who have flown to the US in search of asylum from countries such as El Salvador, Honduras and Guatemala.
He has stood for increasingly radical, headline-grabbing actions, which he considers crucial for his re-election campaign because it gives his base energy.
A CCTV video image of US customs and border protection shows undocumented migrants crossing the Rio Grande river to El Paso, Texas on Wednesday
Trump tweeted a surveillance video of a large group of immigrants who got confused by Border Patrol agents
But the sudden tariff threat comes at a peculiar time, given how much the administration has insisted on the continuation of the agreement between the United States and Mexico-Canada that would update the North American free trade agreement.
It also comes less than two weeks after Trump had lifted import duties on Mexican and Canadian steel and aluminum, a move that seemed to be a barrier to the expiration of his North American trade agreement.
The White House sees the deal, approved by the leaders of the three nations in November, as the cornerstone of the Trump 2020 legislative agenda, but it needs to be approved by the legislators in all three countries before it can be ratified.
Trump's announcement came one day after border agents in El Paso, Texas, held the largest group of migrants they had ever encountered: 1,036 people.
The group crossed the Rio Grande River from the early morning hours of Wednesday from Ciudad Juarez, Mexico, illustrating the growing problem that Trump's administration could not get under control.
The El Paso group consists of entire families, 39 singles and 63 unaccompanied minors, all from Guatemala, Honduras or El Salvador, according to US customs and border controls
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