Behold the tragedy of NAFTA!
Before the evil Bill Clinton signed the North American Free Trade Alliance, US companies exported $24Bn worth of goods and services to Mexico. In the 30 years since then, our trade EXPORTS to Mexico have gone up 10 TIMES, creating hundreds of thousands of US jobs that never existed before.
Mexico had similar success, with even more exports going to the US but a lot of that is oil (and the rest are avocados) and the US is going to import oil from somewhere, regardless – better we do it from a friend and trading partner like Mexico than buy more oil from OPEC, right? Well, not according to our President, who thinks we are better off not exporting $236Bn to Mexico in order to redress a $60Bn Trade Deficit.
Perhaps we would be better off figuring out what kind of things Mexicans would like to buy from the US and encouraging that kind of manufacturing in the US? Just a thought… Also a thought that the US economy is $19Tn and Mexico's economy is $1Tn so the fact that they are anywhere close to an equal trading partner is amazing. In fact, 1/4 (25%) of their ENTIRE economy is imports from the US while the US only imports 1.5% from Mexico. If anyone should be pissed off at their trading partner – it's Mexico!
That's not the way our Tweeter-In-Chief sees things and yesterday he threw a little temper tantrum and cancelled the SCHEDULED meeting with Mexico's President because Nieto said they were not going to pay for Trump's monument to his own stupidity.
Trump says Mexico WILL pay for the wall by imposing 20% tariffs on imports from Mexico but perhaps the President doesn't understand how tariffs work? A tariff is a TAX (that's right, Trump is raising taxes) on imported goods and those taxes are simply passed along to the consumers who, in this case, are the American (not Mexican) people. YOUR avocados will be 3 for $5 instead of 4 for $5 – that's what a tariff will accomplish.