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President Trump announced Thursday evening on Twitter new tariffs on all goods from Mexico until immigration into the U.S. is "remedied."

A tweet previously embedded here has been deleted or was tweeted from an account that has been suspended or deleted.

Why it matters: This is a sharp escalation of Trump's trade and immigration battles and comes as the administration was moving ahead to ratify new trade agreements with Mexico and Canada. The decision is sure to face opposition from some Congressional Republicans and could face legal challenges.

Details: If the crisis at the border isn't resolved, tariffs on Mexican goods will be raised by 5 percentage points on the first of each month, as high as 25% on October 1.

  • "Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory," according to a White House statement.
  • "Workers who come to our country through the legal admissions process, including those working on farms, ranches, and in other businesses, will be allowed easy passage," per the statement.

The big picture: May is on pace to have the highest number of border crossings in a month in more than 12 years, Department of Homeland Security Acting Secretary Kevin McAleenan told reporters on a call. Immigration agencies are overwhelmed.

  • More than 75,000 families have crossed this month and 4 children have died.
  • A record 80,000+ migrants are currently in immigration custody, including more than 50,000 in ICE custody.
  • A record 2,350+ unaccompanied children are currently being held in custody at the border.
  • 400 children arrived within the past 24 hours.

Between the lines: McAleenan said that Mexico needs to step up its security efforts at its southern border with Guatemala, crack down on smugglers who have been using bus lines to move migrants to the U.S. border, and "align on asylum. We need to be able to protect people in the first safe country they arrive in."

What they're saying: Jesus Seade, the trade negotiator for Mexican President Andrés Manuel López Obrader, said late Thursday that if the tariffs are implemented, “we should respond in a forceful way.” For now, he stressed the importance of waiting to see if the tariffs are “really on the table,”reports AP.

Our thought bubble via Axios' Felix Salmon: Strategically, it makes zero sense for the U.S. to enter a two-front trade war, engaging Mexico even as the confrontation with China is reaching a boiling point. China and Mexico are 2 of America’s 3 largest trading partners. To start trade wars with both of them is a declaration of isolationism not seen since 1945.

The fallout: The Mexican peso slumped more than 1.5% to 19.5 pesos per dollar while US stocks pointed to a lower open.

Go deeper

Collins helps contractor before pro-Susan PAC gets donation

Sen. Susan Collins during her reelection campaign. Photo: Scott Eisen/Getty Images

A PAC backing Sen. Susan Collins in her high-stakes reelection campaign received $150,000 from an entity linked to the wife of a defense contractor whose firm Collins helped land a federal contract, new public records show.

Why it matters: The executive, Martin Kao of Honolulu, leaned heavily on his political connections to boost his business, federal prosecutors say in an ongoing criminal case against him. The donation linked to Kao was veiled until last week.

How cutting GOP corporate cash could backfire

Illustration: Aïda Amer/Axios

Companies pulling back on political donations, particularly to members of Congress who voted against certifying President Biden's election win, could inadvertently push Republicans to embrace their party's rightward fringe.

Why it matters: Scores of corporate PACs have paused, scaled back or entirely abandoned their political giving programs. While designed to distance those companies from events that coincided with this month's deadly siege on the U.S. Capitol, research suggests the moves could actually empower the far-right.

9 hours ago - Politics & Policy

Scoop: Kaine, Collins pitch Senate colleagues on censuring Trump

Sen. Tim Kaine speaks with Sen. Susan Collins. Photo: Andrew Harnik/AP via Getty Images

Sens. Tim Kaine and Susan Collins are privately pitching their colleagues on a bipartisan resolution censuring former President Trump, three sources familiar with the discussions tell Axios.

Why it matters: Senators are looking for a way to condemn Trump on the record as it becomes increasingly unlikely Democrats will obtain the 17 Republican votes needed to gain a conviction in his second impeachment.