Progress on the Situation at Our Southern Border

Feb 10, 2025

Summary

Pauses extra taxes on goods from Mexico to see if their new actions help stop illegal migration and drug trafficking.

What problem does this solve?

The U.S. considers Mexico's failure to stop drug and human traffickers a major threat to its national security. This order pauses planned taxes on Mexican goods to give Mexico time to show its new cooperative actions are working to solve the problem.

What does this order do?

Pauses 25% tariff on Mexican goods

Delays the start of a 25% extra tax on products from Mexico until March 4, 2025, because Mexico has started to take cooperative actions.

Allows time to assess Mexico's actions

Creates a period for the U.S. government to see if the steps taken by Mexico are enough to solve the illegal migration and drug crisis.

Threatens immediate tariffs if situation worsens

States that if the border crisis gets worse or Mexico's actions are not enough, the President can immediately put the tariffs into effect.

Removes exceptions for goods in transit

Withdraws previous exceptions for goods that were already loaded on a ship or on their way to the U.S. before the tariffs were set to begin.

Who does this affect?

U.S. businesses importing from Mexico
Mexican businesses exporting to the U.S.
Government of Mexico

What is the real world impact?

•

Encourages cooperation from Mexico

Uses the threat of tariffs as a tool to push the Mexican government to take more action against illegal migration and drug trafficking at the southern border.

•

Creates economic uncertainty

Links trade policy directly to immigration and security issues, which can make business between the U.S. and Mexico less predictable for companies on both sides of the border.

When does this start?

This order takes effect on February 3, 2025, and pauses previously announced tariffs until a future date.

Tariff pause deadline

The additional 25% tax on Mexican goods is paused and will not take effect until March 4, 2025, at 12:01 a.m. eastern time.

•

E.O. 14194 - Imposing Duties To Address the Situation at Our Southern Border