Price Of Gold Reacts to Trump's 5% Tariff Announcement On Mexican Imports
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(Kitco News) - Gold prices rose in early Asian trading on Friday as President Donald Trump said that the U.S. will be imposing a 5% tariff on all Mexican imports starting June 10 until illegal immigration across the southern border is halted.
Spot gold on Kitco.com was last trading at $1,291.70, up 0.26% on the day.
“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP,” Trump tweeted late Thursday. “The Tariff will gradually increase until the Illegal Immigration problem is remedied, at which time the Tariffs will be removed.”
....at which time the Tariffs will be removed. Details from the White House to follow.— Donald J. Trump (@realDonaldTrump) May 30, 2019
According to a statement issued by the White House, tariffs would then rise to 10% on all imports from Mexico on July 10, to 15% on August 1, 20% on September 1 and to 25% on October 1.
“Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States,” Trump said in the statement.
“Mexico has very strong immigration laws and could easily halt the illegal flow of migrants, including by returning them to their home countries,” he said.
Prior to the rise on Friday, gold prices saw gains on short covering and bargain hunting.