Politics

Trump says he's looking at economic penalty for drugs coming from Mexico

Reuters

WASHINGTON, April 5 () - U.S. President Donald Trump said on Friday he is considering an economic penalty apart from tariffs to counter the smuggling of drugs from Mexico across the southern U.S. border.

Trump threatened on Thursday to put a 25 percent tariff on cars coming from Mexico into the United States if Mexico does not continue to help Washington deal with the immigration and drug situation along the border.

He repeated that warning on Friday morning and added, "Likewise I am looking at an economic penalty for the 500 Billion Dollars in illegal DRUGS that are shipped and smuggled through Mexico and across our Southern Border."

It was not immediately clear what other penalties the U.S. president was considering. The White House did not immediately respond to a request for elaboration.

Trump said the tariff decision related to drugs would supplant provisions of the U.S.-Mexico-Canada Agreement, known as USMCA.

"If for any reason Mexico stops apprehending and bringing the illegals back to where they came from, the U.S. will be forced to Tariff at 25% all cars made in Mexico and shipped over the Border to us. If that doesn't work, which it will, I will close the Border," Trump said on Twitter on Friday. "This will supersede USMCA."


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More