Question

when president trump recently threatened to impose tariffs on Mexico unless it stops immigrants from Central America from reaching the U.S. boarder, he was strongly criticized by the U.S. Chamber of Commerce and the National Association of manufacturers, whose members are major business corporations. explain why.

(answer in around 10 to 15 sentence or under)

Answer 1

Background Information

Mexico is America's third biggest trading partner. Goods and services worth $671 billion were traded between the United States and Mexico in the year 2018. Export from the United States to Mexico amounted to $299.1 billion and imports were $371.9 billion. Further, Mexico's exports to the US is 75 % of its total exports. Adding further, Mexico is the biggest exporter of agricultural products to the United States.

Why Trump's warning criticized by the U.S. Chamber of Commerce and the National Association of manufacturers?

President Trump’s warning to levy new tariffs of 5% on Mexican imports has been severely criticized. The United States Chamber of Commerce and the National Association of manufacturers commented on this warning as “exactly the wrong move.” The head of the National Association of Manufacturers said it was a “Molotov cocktail of policy.” Reason being, Imposition of tax on goods imported from Mexico will have a cascading effect — it would harm U.S. consumers, threaten American jobs and investment and affect economic progress of the United States. Many Companies such as General Motors manufactures buses, passenger cars, vehicle accessories and production components in Mexico. Similarly, Mexico is a stopping point for assembly as  Mexico is the second-largest exporter of computers to the US. Other similar goods imported by the United States from Mexico are machinery, Vegetables, fruits, beverages, and other goods.

Moreover, Mexico exports 600,000 to 700,000 barrels of oil to the United States every day. Ten million jobs of the auto sector relies upon the North American supply chain and cross border commerce. Even stocks of U.S. companies tumbled on Wall Street in response to Trump's warning. Reason being, these tariffs will be ultimately born by American families and businesses as prices of inputs will increase.