President Donald Trump issued a new threat to slap tariffs on all imported goods from Mexico. His latest move is intended to address the flow of undocumented immigrants across the border.
Trump said that a 5% tariff will be applied to goods entering the U.S. from Mexico on June 10, and would rise to as high as 25% by October 1, if the government of President Andres Manuel Lopez Obrador doesn't move fast enough to tackle the crisis.
This escalation in trade war would raise the prices of the imported goods from Mexico. Autos is the largest category of Mexican-made products sold in the U.S., and the country is also a huge supplier of fruits and drinks, so those manufacturers could also be hit.
Mexico's U.S. imports have jumped to multi-year highs in recent months as manufacturers around the world, including China, shift production to Mexico in order to avoid tariffs and trade restrictions recently put in place.
Currently, Mexico is the biggest U.S. trading partner, with more than $86 billion in exports to the U.S. over the first quarter of 2019.
Watch the video above to see which goods U.S. consumers may now starting paying more for with Trump's proposed tariffs in place.