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Mexico's Metals Hit With U.S. Tariff Two Weeks After Reprieve

Mexico's Metals Hit With U.S. Tariff Two Weeks After Reprieve

(Bloomberg) -- It ended up being a short-lived reprieve for Mexican steel and aluminum.

Just two weeks after announcing he was lifting tariffs on imports of the metals from Mexico, U.S. President Donald Trump has said he will impose a 5% duty on Mexican goods until it stops immigrants from entering the U.S. illegally.

The new tariff will take effect on June 10 and Trump warned it will “gradually increase until the illegal immigration problem is remedied, at which time the tariff will be removed.” Levies could rise as high as 25% on Oct. 1.

Mexico's Metals Hit With U.S. Tariff Two Weeks After Reprieve

Trump said earlier this month that the U.S. was removing the 25% steel and 10% aluminum tariffs placed on Mexico, as well as Canada, almost a year earlier in the name of national security. The decision to lift the duties was aimed at removing an obstacle for lawmakers in all three nations to ratifying a new North American trade deal.

Mexico accounted for about 11% of U.S. steel imports last year, according to a government report.

To contact the reporter on this story: Phoebe Sedgman in Hong Kong at psedgman2@bloomberg.net

To contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Alpana Sarma

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