TEMPO.CO, Jakarta - The United States President Donald Trump argued that his decision to impose higher tariffs for imported products from China and Mexico was to attract US companies to return to the US.
The recently worsening trade tension has become the main cause of the decrease in assets' value in the past few weeks. The weakening of the stock market that had occurred last week was one of the worst that have occurred since Christmas of 2018, and many strategists predicted that there will be more losses in the future.
Just hours after returning from Trump National Golf Club in Virginia, the US President tweeted a few statements related to trade from his Twitter account on Saturday, June 1, 2019.
In relation to Mexico, Trump reiterated his campaign promises, which was to stop illegal immigration on the southern border of the United States and Mexico, stop the distribution of dangerous drugs, and to create more jobs. All of which, according to Trump, is possible with the application of tariffs.
"[Mexico] took so many of our companies and jobs. It was foolish to let it happen, and now [the companies and jobs] are returning," Trump wrote as quoted by Bloomberg on Sunday, June 2, 2019.
The United States will impose a five percent tariff that will be increased gradually up to 25% on October 2019 on imported products from Mexico. Trump said that the policy was intended to force the Mexican government to stop illegal immigration on the border.
Last month, Trump had increase import tariffs for imported products from China valued at USD 200 billon from 25% from the previous 10%. Meanwhile, from imported products valued at USD 50 billion will be subject to a 25% tariff. China retaliated by applying higher tariffs from US products on Saturday, June 1, 2019.