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Anjani Trivedi and David Fickling

Trump Steps Into a Mexican Labyrinth

The cost of unwinding complex, multilayered supply chains is a murky question. What’s certain is that U.S. consumers will pay the heaviest price.

This is a trade with many moving parts.

This is a trade with many moving parts.

Photographer: PEDRO PARDO/AFP/Getty Images

Global supply chains have become deep and labyrinthine. So when President Donald Trump says he’s slapping tariffs on products that move across the U.S. and Mexican border, there’s a lot to unpick. But one thing is clear: American consumers will be hit the hardest.

The U.S. will impose a 5% tariff on all goods imported from Mexico starting June 10 to address the “emergency” of illegal immigration across its southern border, Trump said  in a White House statement Thursday evening. If the situation doesn’t improve, that will rise to 10% on July 1 and reach 25% on Oct. 1.