Tariffs on Tequila
Second round of talks on Thursday
Currently the United States is actively engaged in two trade wars. We are at odds with China and The United kingdom. There is an old saying the third time is a charm but there is nothing charming about using tariffs as a means to tackle our current immigration crisis. According to BBC news, the Trump administration is scheduled for a second meeting with Mexico's foreign minister in Washington on Thursday.
The first round of talks, which took place on Wednesday for approximately ninety minutes, ended without an official agreement. The meeting was described as cordial, with a focus on migration flows and what Mexico will be proposing to the United States. Even though tariffs was not a topic of discussion, this did not prevent the current Commander in Chief from expressing is game plan via Twitter.
President Trump tweeted, "immigration discussions at the White House with representatives of Mexico have ended for the day. Progress is being made, but not nearly enough!
Border arrests for May are at 133,000 because of Mexico & the Democrats in Congress refusing to budge on immigration reform". He then reiterated the fact that "talks with Mexico will resume tomorrow with the understanding that, if no agreement is reached, Tariffs at the 5% level will begin on Monday, with monthly increases as per schedule. The higher the Tariffs go, the higher the number of companies that will move back to the USA"!
Tariffs on Beer.
Jobs, reform and trade deficit all in one.
With the 2020 election getting closer and closer, president Trump is running out of time to deliver on his election promise to secure our borders from an influx of illegal immigration, which he proposed building a physical border wall, as a major part of his immigration reform.
He also planned on reducing our trade deficit, which is currently the highest in the nation's history, along with bringing jobs back to America. Even though raising taxes on both imports can be used as a strategy to reign in talks with partner nations, it may not actually be practical, to be used as a consolidated strategy to kill three birds with one stone.
In the case of bringing jobs back to America, the increased rate on imports can easily be passed on to the consumer, or companies may decided to take a loss on profits. A tariff increase on Mexican goods may not be an effective strategy to motivate a nations' will to be let's say a little bit more proactive with regards to illegal immigration since people migrate not just for a better earning potential but a better quality of life overall.
If these proposed Tariffs do make a solid negative impact on Mexico's economy, this can actually increase illegal immigration, making the situation a little bit more critical than before
Trump to hit Mexico with tariffs in anti-immigration measure