Mexico says they'll retaliate if Donald Trump levies a 25% tariff on everything we buy from them. But retaliate how? What do they buy from us?
In fact, they buy about $300 billion worth of goods from us every year. Here are the US industries that would be hurt the most if Mexico levied broad retaliatory tariffs on us:
If you work in one of these industries, you should probably be a little wary of Trump's tariff threats.
Hey, what are you worried about? "Trade wars are good, and easy to win." DJT, 3/2/2018.
/s
...you should probably be a little wary of Trump's tariff threats.
Likewise, if you're thinking of buying a car made in Mexico. We're planning on ordering a Mach-E for my wife on Friday. More likely now we will take the closest match in dealer stock than place an order for delivery next year.
If it happens, can't wait for all the surprised people who are shocked at the big jump in price on the stuff they want, especially the schmucks voted for that asshole.
For me, I'm only worried about the tariffs on the made in Mexico Fenders (MIM's), which are lower cost end of the Fender line (and their biggest sellers). I'm too mediocre a player to need a USA made model, though I can afford them.
His suppporters won't hold it against him. Recall the soybean farmers who were hammered by China's retaliation. You could look up the interviews. Not one desertion. "He must know what he is doing" was the most common response.
blind obdience from the masses.
Unfortunately, I may have to buy that $900 MIM guitar before Il Duce's 2nd Reich begins, since a 25% increase would result in an unviable price.
The cheaper (under $2K) Taylor guitars are also mostly made in Mexico, so the fun begins
Mexico will also pay for the tariffs it imposes on our exports.
I think the question is, why would you trust Trump? He's making a mockery of his own USMCA, showing that his signature on anything is worth exactly nothing.
A trade war is going to appeal to countries frustrated by Trump's constant breaking of his word. And tariffs aren't the only ways they can retaliate. China or the EU might even step in and establish contracts for goods meant to be sent to the US, risking medium-term effects on the US supply chain. Combined with his deportations, prices at the grocery store are going to explode and produce shelves will be emptied.
ah just the opening the Brexiteers have been waiting for....
Well if Trump takes action, Hello China & Germany (if I were a Mexican President I should be quite burning up the phone with both of the EU and the Chinese, not perfect off-set to USA given the integration but at least partial)
Mexico is the 11th-largest oil producer on Earth, yet they import $26Bn worth of oil from us each year. My guess is, inadequate refining capacity. Poor planning. Or some such.
Purchasing these goods from China will make Mexico more efficient and resilient.