Good Friday morning. I'm Anna Palmer and welcome to your Politico Playbook audio briefing. Stay tuned after the show for a message from Jewel Labs.

And I'm Jake Sherman. In the last 12 hours, President Donald Trump at his White House took two distinct actions that throw the global trade order in flux, could significantly damage markets, sharply raise costs for U.S. consumers, and have

steep political impacts in D.C. and other capitals around the world. Number one, the president

has vowed to slap a 5% tariff on all goods from Mexico in June, unless it helps stop

illegal immigrants from coming into the United States. Here's how the Washington Post explains

it. Tariffs would increase in size until all

illegal immigration across the border halts, though that scenario has never occurred in modern

U.S. history. The tariffs would then increase by 5% on the first day of each month starting July 1.

The Tariffs could hit as high as 25%. New York Times notes that Mexico is U.S.'s largest trading partner and Trump's decision

is likely to create significant opposition among the U.S. business community.

Mexico's president penned a letter late Thursday that alluded to the U.S. history as a nation of

immigrants.

He also urged Trump to, please remember remember that I do not lack valor,

that I'm not a coward nor timorous, but rather act according to principles. The opposition in the

U.S. came quickly. Chuck Grassley, chairman of the Senate Finance Committee, said Thursday evening

that trade policy and border security are separate issues. He also said following through with

the threat would seriously

jeopardize passage of the USMCA. The journal is reporting that markets were down following Trump's

announcement. What everybody is asking is, could Trump be bluffing? Maybe yes, but honestly,

we don't know that. And in the political and economic sphere, it would be irresponsible to believe

he is. We are told he likes tariffs because they can be enacted unilaterally and pulled back on demand.

He has left himself wiggle room.

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