Trump to slap tariffs on Mexico over migrant flows

President Donald Trump said that he would impose a 5 percent tariff on Mexican goods until that country stops immigrants from entering the U.S. illegally.

The tariff would take effect on June 10 “until such time as illegal migrants coming through Mexico, and into our country, STOP,” Trump said in a Twitter post on Thursday night.

He warned that the levy “would gradually increase until the illegal immigration problem is remedied at which time the tariff will be removed.”

The tariffs could rise as high as 25 percent on Oct. 1, Trump said in a statement released by the White House.

“Mexico must step up and help solve this problem,” Trump said in the statement.

Shares in Japan's major automakers sank in overseas trading following the news, as the president's move was seen affecting vehicles made in Mexico and sold north of the border.

Shares in Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. all fell around 3 percent or more, while Mazda Motor Corp. stock fell nearly 7 percent. All four automakers operate vehicle assembly plants in Mexico.

The Detroit 3 and some German automakers, as well as auto suppliers, also operate factories in the country and export to the United States.

Reuters contributed to this report.