independent news and opnion

Trump’s Mexico Tariffs Could Start Another Trade War, Economists Warn

0 39

Tomatoes are seen at a market in Mexico City, Mexico, on May 9th, 2019.

President Donald Trump threatened on Thursday to impose tariffs on all Mexican goods as a way to force the country to end illegal immigration across the southern border. In a tweet, Trump announced that the United States will add a 5 percent tariff on the country’s imports in June, adding that the tariff “will gradually increase until the Illegal Immigration problem is remedied.”

The president’s announcement has already disrupted U.S. markets and alarmed farmers and business owners, who are still paying the price of the president’s first trade war. Now, experts predict another round could cost the economy billions of dollars and undo recent efforts to stabilize trade.

Here’s what economists say these tariffs could mean for both producers and consumers of these goods.

Raising Costs for Consumers 

Mexico is the U.S.’s third-largest trade partner. Experts say raising costs on imports will have a direct impact on the U.S. economy and consumers, and if Mexico retaliates as anticipated, it could decimate farmers who are already struggling.

Source link

You might also like

Thanks !

Thanks for sharing this, you are awesome !