Well, those claims didn't age well.Trump's tariff plan could boomerang, spark trade wars with China, Mexico
Donald Trump's threats to slap steep tariffs on Chinese and Mexican imports may have won him votes in Republican primaries but they would likely backfire, severely disrupting U.S. manufacturers that increasingly depend on global supply chains.
The Republican presidential front-runner's campaign pledges to impose 45 percent tariffs on all imports from China and 35 percent on many goods from Mexico would spark financial market turmoil and possibly even a recession, former trade negotiators, trade lawyers, economists and business executives told Reuters.
Among those hardest hit would be the U.S. auto industry, which has fully integrated Mexico into its production network. Some $118 billion worth of vehicles and parts flowed north and south across the border tariff-free last year, according to U.S. Commerce Department data.
A 35 percent tariff would raise costs for Ford Motor Co's U.S.-assembled F-series and medium-duty pickup trucks that use Mexican-made diesel engines, one of its most profitable vehicle lines. (Graphic on U.S.-Mexico auto and parts trade: tmsnrt.rs/1UN3wun)
Ford CEO Mark Fields on Wednesday defended the company's investment strategy, which includes $9 billion for U.S. plants over the next four years, saying, "We will do what makes sense for the business."
Buyers of Fiat Chrysler Automobiles NV's popular Ram 1500 pickup trucks assembled in Saltillo, Mexico, could see their $26,000 base price pushed up by $9,000 if the tariff is fully passed on to consumers. A Chrysler spokesman declined to comment on Trump's statements.
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severely disrupting U.S. manufacturers that increasingly depend on global supply chains.
Oh you mean, their cheap labor wouldn't matter? Wont that be terrible?
I think a little hardship is necessary in order to fix problems of this magnitude. Just being realistic. Band-aids don't work. And neither do more unfair trade deals.
I also don't give a crap about trade wars with mexico and china. What are they going to do? Raise the prices of foreign product that we don't HAVE to have? Who cares if it means we benefit in the long run? They don't seem to go over the specifics of that.. They never do. Just doom and gloom for the elites.
Once we get the market going with jobs and American production, we go free trade. I think that sounds PERFECT.
We are only running a 125 billion dollar trade deficit this year and its only March.
Trump announces tariff-avoiding deal with Mexico.
Pop the tequila and pass the guacamole — the US has struck a trade deal with Mexico that will avert tariffs on imports.
“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico,” President Trump tweeted Friday night.
“The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended,” he added.
“Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border,” he said.
“The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended,” he added.
“Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border,” he said.
Mexico Capitulates to Trump’s Tariff Threat, Deploys 6,000 Troops to Guatemalan Border to Curb Migration.
