Trump's Mexico Tariffs Risk Economic Turmoil Ahead of 2020 Vote
President Donald Trump’s threat to impose new tariffs on Mexico unless it stops the flow of migrants into the U.S. could cause massive economic disruption ahead of the 2020 elections and doom his signature renegotiation of a North American trade deal.
Trump announced a 5% tariff on all imports from Mexico unless it takes “decisive measures” -- as judged by his administration -- to stem migrants entering the U.S., according to a White House statement. The tariffs would begin June 10 and scale up incrementally until they reach 25 percent on Oct. 1.
The surprise move rattled global financial markets as investors were counting on slow but steady progress toward congressional approval of the U.S.-Mexico-Canada Agreement that Trump’s team negotiated to modernize the North American Free Trade Agreement, which went into effect in 1994.
Trump’s sharply worded statement describing alleged consequences of lax border security blamed Mexico and Democrats -- the two groups that have the most control over his trade deal’s fate.
These tariffs represent a de facto dismantling of Nafta, which could unite a broad coalition of manufacturers, farmers and bipartisan lawmakers against the president the year before he seeks re-election.
https://www.msn.com/en-us/news/politics/trumps-mexico-tariffs-risk-economic-turmoil-ahead-of-2020-vote/ar-AACbVbl
While at the same time wanting Congress to pass NAFTA's replacement, the USMCA or something like that.
