US Companies Likely to Be Hit Hard as Trump Pushes Mexico Tariffs
Stocks drop Friday on new threats to US trade
Jason Ditz
US stock indices dropped once again on Friday, around uncertainty related to President Trump’s threat to impose tariffs on Mexico. This, combined with the losses earlier this month to the US-China trade war, led to the market’s worst performance this year.
Trump’s announcement of a 5% Mexico-wide tariff starting on June 10, surging to 25% by October, is raising a lot of concern, with some major US companies that have supply chains in Mexico standing to lose billions of dollars over the tariffs.
Mexican officials are of course warning about the disastrous consequences of this move, but the fear is even greater within the US, with New Mexico’s governor warning the move could be “economically catastrophic.”
Trump has threatened to continue worsening the tariffs until all illegal immigration stops. There are substantial doubts that Mexico could even theoretically pull this off, meaning that as with China, the administration’s hopes for a quick victory are unrealistic, and this could be another long-term problem for the US economy.
Trump’s announcement of a 5% Mexico-wide tariff starting on June 10, surging to 25% by October, is raising a lot of concern, with some major US companies that have supply chains in Mexico standing to lose billions of dollars over the tariffs.
Mexican officials are of course warning about the disastrous consequences of this move, but the fear is even greater within the US, with New Mexico’s governor warning the move could be “economically catastrophic.”
Trump has threatened to continue worsening the tariffs until all illegal immigration stops. There are substantial doubts that Mexico could even theoretically pull this off, meaning that as with China, the administration’s hopes for a quick victory are unrealistic, and this could be another long-term problem for the US economy.
posted by Satish Sharma at
10:05
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