The White House released a statement on Thursday threatening Mexico, our largest trading partner, with imposing a five percent tariff, beginning on June 10, on all Mexican goods coming into the United States, unless Mexico takes significant measures to stop immigrants from crossing the border. President Trump announced this new measure on Twitter, after which the official announcement by the White House followed.
On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied…
The five percent tariffs would subsequently increase 5 percent each month. “Tariffs will be raised to 10 percent on July 1… 15 percent on August 1, 2019, to 20 percent on September 1, 2019.” By doing this, Trump opens a new front on what is now a global trade war, which is already being fought against China, Europe, Canada, and possibly Japan. Now, he targets Mexico over his infamous immigration obsession, which he seems to think Mexico should be doing more than it already is.
This move will surely backfire, since he had previously worked towards having the new free trade agreement with Mexico, a successor to NAFTA, which he claimed as a personal victory. To jeopardize the USMCA would thus harm him, and possibly, his re-election.
These extreme measures are a challenge to Mexico: “do as I say or a trade war is on.” Should Mexico retaliate, things could look awfully bad for American businesses, consumers, and markets. This is why Rufus Yerxa, president of the National Foreign Trade Council, called the Trump’s plans “a colossal blunder.”
We have previously written about the consequences of closing the border, but a trade war with Mexico, a key ally for the United States and its largest trading partner could spiral into an economic disaster. Mexico sends products, 40% of all vegetables Americans consume while cars make up fraction of the total trade, which amounts to $346.5 billion in goods.
@greengirl_produceTariffs work as a tax on consumers, not on governments, and certainly not on immigrants. A trade war with Mexico could have a domino effect on the American auto industry, eventually leading to a loss of thousands of jobs. Will Trump be the cause of his own undoing?
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