On Friday the Mexican government,
in response to the tariffs the Trump administration placed on steel and
aluminum, stated that they would place duties on new U.S. products. As one of the
United States largest trading partners, Mexico believes the 25% tariff on
imported steel and 10% on aluminum is hurting trade relations between the two
countries and therefore need to be withdrawn. The Mexican Deputy Economy Minister,
Luz Maria de la Mora, believes that the tariffs created $2.7 billion in damage
and will thus be attempting to target this value by “bring[ing] in some new
ones and tak[ing] some others out” of American goods, if the tariffs are not
repealed. The article stated that even if the value of goods stays the same, by
bringing in new products, U.S. businesses would be more likely to lobby
Washington in opposition to the tariffs. As de la Mora continues to believe
that United States needs to see Mexico as a partner and ally, we will have to watch
whether they are able to instigate duties and swap out products in an attempt
to end the tariffs imposed by the United States.
https://www.reuters.com/article/us-usa-trade-mexico/mexico-eyes-fresh-us-targets-to-pressure-trump-over-steel-tariffs-idUSKCN1QI5LV
3 comments:
This is an interesting article regarding the ongoing trade difficulties between the United States and Mexico. At this point I am very curious to see if a deal will be brokered to free up trade between the two nations. Do you think this is possible? Personally I see the Trump administration sticking to its protectionist tactics and not opening up anytime soon.
I do agree with Will. I do not see the Trump administration backing down anytime soon on any trade front. With China and Mexico being some of our largest trade partners, it will be interesting to see what effect our tariffs will have in the long run. I could see it having a growing negative effect on not only our economies but also our relationship with them. I do, however, think a deal is possible. It just might take some time.
The current discussion about the US's trade policy has been very interesting. As economist we know open trade is beneficial to most parties. However, I think most people can understand why many in the us feel the tariffs are good. We might have to pay high prices, but they will help the US's stay competitive. I agree that we should view Mexico as an alley and work the trade deal out with them.
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