By Canadian Press

Trump threat of tariffs on Mexico threatens new NAFTA

May 31, 2019 | 8:23 AM

OTTAWA — President Donald Trump says he’ll put tariffs on all goods from Mexico starting next month, a move that could blow up chances of ratifying the new North American free-trade agreement.

Trump says he wants Mexico to stop migrants from Central and South America from passing through on their way to the U.S. border.

Unless it does, he says he’ll tax all imports to the U.S. from Mexico starting June 10, with tariffs starting at five per cent and increasing to 25 per cent by October.

A week ago, the United States lifted tariffs on steel and aluminum from Canada and Mexico, which both countries said stood in the way of ratifying the new three-country trade deal they signed at the end of last year.

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The new tariffs Trump is threatening for Mexico would be much broader and end up higher than the ones he just took off.

The new trade agreement doesn’t kick in until it’s approved by all three countries’ national legislatures.

The Canadian Press