Trump announced that he would impose tariffs on all goods in Mexico, and international oil prices fell by 3%

On the evening of May 30, local time, US President Trump announced on the social networking site Twitter that he would impose a 5% tariff on all Mexican goods exported to the United States from June 10, and increase the tax rate month by month. This "sudden attack" has greatly depressed the confidence of the commodity market, and both international oil prices have fallen, and the current decline is stable at around 3%.

In his tweet, Trump accused Mexico of inaction on the illegal smuggling activities that have been repeatedly banned on the US-Mexico border. "From June 10, the United States will start to impose a 5% tariff on all goods imported from Mexico until the activities of smuggling into the United States from Mexico stop." Trump said.

After the news was released, the international oil price fell sharply, with the highest drop exceeding 3%. As of 18: 38 on May 31st, Beijing time, the price of WTI crude oil futures delivered in July was $55.43, a decrease of 2.05%. Brent crude oil futures for July delivery was $64.9, down 3.05%.

"The new round of trade tensions has weighed on the price of risky assets." Harry Tchilinguirian, a commodity analyst at BNP Paribas, said.

On the last trading day, due to the high crude oil inventories in the United States, international oil prices have hit the biggest monthly decline this year: Brent oil prices have fallen by about 8%, and WTI prices have fallen by about 11%. If the current trend continues, the downward trend in May will be further intensified.

At the same time, the White House issued a document entitled "Presidential Statement on Emergency Measures against Border Crisis". It writes that if Mexico takes effective actions to solve the illegal immigration crisis, the United States will cancel the tariff increase after the assessment. If the crisis persists, the tariff rate will be increased by 5% per month from July 1, and will remain unchanged after being adjusted to 25% on October 1 until Mexico stops the entry of illegal immigrants.

The statement said that if Mexico refuses to cooperate, the high tariffs will make its domestic enterprises move to the United States, and a large number of working machines will also flow to American towns. These enterprises that move to the United States will not be affected by tariffs. "We believe that Mexico has the ability and will help the United States solve the problem." The statement reads, "We now ask Mexico to do so immediately."

According to Reuters, the Mexican president expressed the hope that Trump would arrange for American officials to meet with the Mexican foreign minister, so as to seek solutions beneficial to both countries.

Before announcing the news of tariff increase, Trump forwarded a video of illegal immigrants crossing the Texas border isolation network shot by a surveillance camera on Twitter, and claimed that the smuggling case cracked on May 29 involved a total of 1,036 stowaways, the largest in scale. "Democrats must stand on the side of the border patrol and fill the loopholes on the border!" He said.

This is not the first time Trump has asked Mexico to solve the problem of illegal immigration under the threat of tariff increase. In April this year, he said that if Mexico did not stop illegal immigration activities, the United States would impose a 25% tariff on all cars produced in Mexico. "If that doesn’t work, I will close the US-Mexico border." Trump said in Twitter at the time.

Mexico is the third largest commodity trading partner of the United States and the second largest commodity importer. According to the statistics of the Office of the US Trade Representative, the total trade in goods and services between the United States and Mexico in 2018 was about $671 billion. Among them, the total amount of goods imported by the United States from Mexico was US$ 346.5 billion, an increase of 10.3% over 2017. The three largest categories of goods imported are automobiles, electronic devices and machinery.