President Trump put 25% tariffs on steel imports
“The bilateral deal negotiated with Mexico stipulates that between 40 and 45% of each car produced must be made by workers that earn at least $16 per hour” [2]
Forces United States steel to be outsourced
This import tariff is looking like Bush’s 2002 ones which ended very poorly, there is a problem with overproduction of Chinese steel and this tariff is going to hurt more US businesses than it is going to help
Mexico sends the United States about $3 billions of steel annual
Overall, Mexico took this tariff and decided to hit the United States back with tariffs on politically sensitive items. The imports include United States pork, steel, cheese, bourbon, apples, and other goods. The main goal of the tariffs being imposed on the politically sensitive imports was to show America that they are no less than them and that they would not be taking these tariffs lightly. They are purposely adding tariffs onto goods related to the Republican party to retaliate.
According to Politico, Mexico has increased their retaliation tariffs on the United States which will end up effecting about $3 million worth of United States products. These tariffs were not created to aggressively attacked the United States economy and things such as inflation, economic welfare as well as hitting the working class.
Mexicans are beginning to worry as Trumps goal was to hit back the politicians he feels were not supporting the United States. Regardless of the fact that this was aimed at people at the top of the economy, rich and powerful, it will begin to hit the Mexican working class. These individuals could possibly be laid off – or in more likely situations – their pay check will be cut down. This will then lead to a lower quality of life as the areas they are living in are not going to lower costs to live such as housing and food in the area. All of these negative effects will be leading to an abuse of freedom in the working class. They are reducing their freedoms and therefor restricting their movement from these not as nice cities.
This video below is how Mexico and America began to fight with tariffs in 2017.
https://www.youtube.com/watch?v=VMsaxS8pyjw
Trump to Impose Steel Tariffs on EU, Mexico, Canada
Made by: Bloomberg Markets and Finance