According to an official statement and tweet from U.S. President Trump on May 30, the U.S. will impose a 5% tariff on all goods imported from Mexico beginning on June 10. The tariff hike is set to be issued in response to the sustained influx in migrants crossing the U.S. border through Mexico.

In the statement, President Trump asserts that, “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.” Last month, more than 144,000 migrants were detained after crossing the US-Mexico border illegally or after presenting themselves at registered ports of entry – the highest number in 13 years.

Days after the Trump administration made good on their promise to raise Section 301 tariffs on Chinese imports, China's State Council Customs Tariff Commission announced new tariffs on $60 billion worth of U.S. goods. China's latest tariffs on 5,140 products will take effect on June 1, adding up to 25% to the cost of U.S. goods that are covered by the new policy.

China’s latest counter-strike was expected after the U.S. raised Section 301 tariffs on May 10. Speaking about the likelihood that China would retaliate with their own set of tariffs, President Trump's top economic adviser Larry Kudlow said, "I reckon they will. We'll see what they come up with."

President Donald Trump has threatened to escalate tariffs on Chinese goods from 10 percent to 25 percent in a series of tweets Sunday, May 5 and Monday, May 6. In response, the value of the yuan and crude oil fell, and the Dow Jones Industrial Average plunged 450 points triggered by a global selloff.

“Risks of a full-blown trade war are escalating,” said Chua Hak Bin, a senior economist at Maybank Kim Eng Research in Singapore. “Trump’s threat may backfire as China will not want to negotiate with a gun pointing at their heads.”