Trump Announces Tariffs Against Mexico And Now Is The Time To Stock Up On Tecate, Tequila, And Avocados
The Trump administration, in it’s latest crusade against immigrants, has announced a new tariff regime against Mexico.
These tariffs are allegedly designed to pressure the Mexican government to further stem the flow of migrants through the country so fewer arrive at the US-Mexico border.
But according to most economists, these tariffs will only be effective at raising the costs of dozens of popular items in the US, from cars and coffee to avocados and electronics.
Trump didn’t mince words in saying he was applying these tariffs to stop “illegal migrants.”
Racism is the basis for this problematic and ill-informed economic policy that will have major consequences for both Mexico and the US.
The news sent shockwaves across Washington, Mexico, and even international stock exchanges.
President Trump’s surprise plan to levy tariffs on all goods imported to the U.S. from Mexico would strike a hammer blow to the US, threatening the economy and all but guaranteeing financial pain for businesses and consumers.
Mexico is the US’s top trading partner. Such a duty would likely raise prices on avocados, beer, and so many other consumer goods. Ditto for auto parts, computer equipment, and other items that are vital to a cross-border economy that’s been stitched together tight by the decades-old North American Free Trade Agreement (NAFTA).
The costs of beer – looking at you Modelo and Tecate – will skyrocket along with avocados, tequila, and so much more.
Is this the end of avocado toast? Not exactly. But you can expect to definitely start paying more pretty quickly if these tariffs are allowed to take effect.
For their part, the Mexican government has condemned Trump’s latest attack on the country.
Mexican officials have condemned President Trump’s proposed tariffs on Mexican goods over illegal immigration into the U.S.
“I tell all Mexicans to have faith, we will overcome the attitude of the U.S. government, they will make adjustments, because the Mexican people don’t deserve to be treated this way,” Mexican President Andrés Manuel López Obrador told reporters Friday, according to Reuters.
“Please, remember that I do not lack valor, that I am not a coward nor timid but rather I act according to principle,” Mexican president Andrés Manuel López Obrador wrote to Trump, adding that “social problems are not solved with duties or coercive measures.”
Mexico’s Foreign Minister Marcelo Ebrard, who was expected to travel to Washington on Friday, said on Twitter that Mexico’s treatment at Trump’s hands is “unfair” and does not make economic sense.
Trump’s new tariff move wouldn’t just hurt the U.S. economy. It would likely harm the Mexican economy, as well.
That could have the net effect of causing more migration to the U.S., further intensifying the issue Trump is seeking to solve.
The greatest partner the US has on border security is Mexico and if Trump really wants to solve the problem, this the exact opposite of what he should be doing.
Trump’s latest move was met with fierce resistance on Twitter.
“The president’s threat to impose tariffs on Mexico will only hurt American workers, economic growth and our national security,” Rep. Henry Cuellar, D-Laredo, wrote on Twitter after Trump announced his move late on Thursday via social media.
Texas Congressman, Joaquin Castro, called out the Texas governor because the tariffs will have outsized consequences on Texas.
According to several reports, Texas alone could face more than $20 billion in losses.
Many are very confused as to why the president would pursue such unpopular policies.
More than half of those recently polled said they do not support Trump’s trade wars, not against Mexico nor China.
But if it’s one thing we’ve learned over the course of this administration is that Trump himself likely doesn’t understand the actual consequences of his policies.
Unless members of the GOP finally stand up against this misguided policy, one that is deeply rooted in racism, it will cause issues on both sides of the border.
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