Border Battles: Navigating Trump's Trade Policies With Mexico, Canada, China And Global Implications
NorthAmerica
Business
Mexico and the United States have always been close partners. They share a long, 2,000-mile border with 47 active land ports. They also have over 200 years of history that's built deep cultural ties. In 2023, Mexico became the top trading partner for goods with the U.S., reaching $807 billion in trade, even more than China. Mexico exports mainly steel, aluminium, and agricultural products like tomatoes, automobiles, and auto parts to the US. Exports from the U.S. to Mexico grew from $42 billion in 1933 to $322 billion in 2023. Mexico is also the second-largest source of crude oil for the U.S. Recent talks between the Mexican and U.S. governments focused on tariffs and a tax on imports. President Trump had some concerns regarding the taxes he wanted to impose. Donald Trump agreed to pause those tariffs for 30 days as Mexico’s President seeks more negotiations to save the situation for both countries. This means the 25% tariffs on Mexican products planned for February 4, 2025, would be delayed for some time. Claudio Sheinbaum promises to work out solutions with the Donald Trump administration that would not heavily impact the Mexican people. President Trump is worried about the flow of migrants and drugs into the U.S. In a retaliatory move to address this, Donald Trump is acting steadfastly to deport all the illegal migrants in the US. So far, more than 4000 migrants have been deported to Mexico, reflecting a soiled relationship between the US and Mexico government. President Sheinbaum has increased the National Guard's presence at the border to help stop drug trafficking and illegal migrants into the US. The US has imposed a 10% tariff on goods from China. President Trump is expected to have talks with China’s leader, Xi Jinping, as China also imposed counter-tariffs on the US. China imposed a 15% tariff on US goods: coal and natural gas Some Republicans in Congress support Trump's tariff plans, even though farmers may suffer from a trade war. The United Nations and World Trade Organization have raised concerns about how these tariffs could hurt the global economy, especially in developing countries. Research from Yale shows that American families could lose about $1,250 a year if Trump's tariffs go through. That loss drops to about $700 a year without tariffs on Mexico. The middle class will feel this more than wealthier households. Tariffs often hit the middle class the hardest. Trump’s tariffs could affect over a trillion dollars in trade, putting pressure on countries that account for 40% of American imports. These changes might lead to a tough situation for everyday Americans and Mexicans, especially those in the middle class. This could even affect members of the European Union as the tariff policies have a wider reach. Donald Trump's role in the global economy is likely to be felt further as he employs means of tariff impositions to safeguard American companies. To help with the potential fallout, it would be smart for both governments to offer relief, like payroll tax cuts, to protect jobs. There is a need for the US to work with Mexico, Canada, and China to find common ground regarding tariff imposition. This would prevent the spillover of tariff effects to the global economy, which could result in global economic instability.
7 DAYS AGO
