It reduces the demand for Mexican goods. So yes, it does raise the costs of goods and that is a hit to consumers and a negative. In the positive side of the ledger, it means less US money is going to Mexico and is either staying in country or going to countries that are acting like better allies.
Do you have an idea of how much we import from mexico? This is a 5% tariff on ALL of that. This is ■■■■■■■ terrible for US consumers. Like potentially negative Q3 GDP terrible.
We never should have had free trade in the first place. Free trade agreements with countries that have cheap labor is one of the major factors in the decline of the blue collar middle class income.
We should always have tariffs on foreign goods that have cheap labor. So long as it’s a product that can be made domestically.
Just like nations that have more expensive labor than the US should have tariffs on our goods if they can produce them themselves.
Do you think it will be a free ride for Mexico. I’m almost certain this will get their attention in a big hurry. I’m hoping they will get serious and take some action before the tariffs kick in.