In a statement released after the president's announcement, the White House indicated that they would raise tariffs by 5 percent every month, up to a hefty 25 percent.
Wall Street's main indexes are down more than 6% in May, as investors have become increasingly anxious about deteriorating trade talks between the US and China trade war and have sought safety in government bonds.
BMW, Daimler and Volkswagen, which have plants in Mexico to take advantage of lower labor costs and USA trade deals with its southern neighbor, were down by as much as 2.9% by 0800 GMT.
Barron's reported the yield on 10-year Treasuries fell nearly 0.1 percent to 2.16 percent - signaling that risks of a recession are rising, analysts said.
The White House said Trump would be using the International Emergency Economic Powers Act to implement the tariff.
Robert Pattinson est le nouveau Batman — C’est officiel
Un porte-parole de Warner Bros. s'est refusé à confirmer l'information, indiquant juste que "des négociations sont en cours ". Il joue aussi dans The Lighthouse , qui vient de sortir au cinéma et qui a été présenté au festival de Cannes.
"Trump's tariff threat also looks set to derail the significant progress made on USMCA", noted analyst Clayton Allen of Height Securities in a research note. "President Trump, social problems aren't resolved with taxes or coercive measures", he said, defending his administration's handling of the migration issue. "Because of the Dems, our Immigration Laws are BAD".
Amid record numbers of migrants crossing the border, the deaths of six sick children in United States custody since September have raised questions about the level of care provided by U.S. authorities.
The announcement came after US Customs and Border Protection said a group of 1,306 people had been apprehended crossing the border in El Paso, Texas.
"The unknown factor is the impact on suppliers, as components can move back and forth between Mexico, the United States and Canada up to 20 times before they make their way into assembled cars".
The new tariff threat likely halts Mexico's pending ratification of Mr. Trump's Nafta treaty replacement, the United States-Mexico-Canada Agreement.
North Korea's top United States envoy executed
While North Korea hasn't used its propaganda services to comment, the report in the conservative Chosun Ilbo daily could be true. Kim Yong Chol had met with Trump at the White House before the Hanoi summit in February to arrange details of the negotiations.
The crumbling city of Tapachula, near the Guatemalan border, has become the epicenter of the crackdowns, with thousands of migrants stranded because the Mexican government isn't providing them visas to travel.
If the tariffs were to take effect, they could eventually raise prices for a new Chevrolet Blazer SUV, a burrito at Chipotle's, grapes at the grocery store or a new shirt. "So it would be a clear market access violation".
What would tariffs on Mexico mean?
United States Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer opposed President Donald Trump's plan to impose tariffs on Mexico, CNBC reported. "There goes USMCA!" he said.
With the move to impose tariffs Trump is reaching for one of his favorite policy tools to pursue a broader policy goal.
The U.S. imports $2.4 billion of clothing and textiles from Mexico.
Battinson: The Best Social Media Responses To Robert Pattinson as Batman
Another Change.org petition is titled, "Stop Robert Pattinson in Playing " The Batman " for Matt Reeves and Warner Bros". The rumours are that Pattinson will take up the role for the next film which will simply be called The Batman .
Lopez Obrador's administration has stepped up migrant detentions and tightened access to humanitarian visas, slowing the flow of migrant and refugee caravans north and leaving hundreds of people stuck in southern Mexico. It also forces Mexico to strengthen workers' rights.