US President Donald Trump’s decision to raise taxes on the import of steel and aluminum has clearly ignited Mexico as a result of which they have announced new tariffs on Us products like cheese, pork, bourbon and steel, amongst others. The Mexicans have made the tariffs in such a way that the states in the US which are dominated by the Republican party will be affected the most. This is crucial as they country is eyeing mid-term elections later this year. Trump raised taxes on steel and aluminum imports for allies like Canada and the European Union as well, inviting their fury.
As Mexico happens to be the largest international consumer for US pork producers, the 20% tariff is likely to hit them the worst. Other products have also suffered the same fate including American steel products which are imported in appreciable quantities. Trump’s decision could not only harm the Republican Party but it may also damage US financially over the long haul as it could lead Mexico elsewhere to meet its demand for product and that’s loss of trade for the US.
Iowa, for instance, is the largest producer of pork in the US and Rod Blum, the Republican Congressman there, is likely to be at the receiving end of the backlash. The trade war between the US and Mexico cannot be looked at in isolation as it is part of a much larger problem. The Trump administration is trying to revise the North American Free Trade Agreement (Nafta) which regulates the trade between US, Canada and Mexico. The trillion-dollar agreement will be replaced by bilateral agreements, if Lary Kudlow, Trump’s economic advisor, has his way. Both Canada and Mexico are against this and things will get worse if the US pushes them too far. The trade between US and Mexico is worth $600 billion annually and all these developments could jeopardize the sustenance of that figure.
Sasha Farrell is a privileged and versatile content writer and editor in the domains of Pharma, Health, and Medical. Before getting into the writing world, Sasha was working as an STM editor for few renowned authors and publications, which gave head-start to rifle through the Pharma, Health, and Medical Innovations.