Is It in America’s Interest to Economically Destabilize Mexico?
The Struggle of the North
The speculation about America targeting to ruin the economy of Mexico started when Donald J. Trump, the newly elected president of the United States proposed to impose a 20% tariff on all imports coming from Mexico (Jones). There are things that we have to consider before we can agree to speculate or not. These include America, Mexico, and the economic relationship between these two countries.
First, let us know America with its newly elected president. During the inauguration, Trump has promised to put America first. However, there are many surprising things that he has done. One of them was the withdrawal of the state from the Trans-Pacific Partnership. He also threatened to withdraw from NAFTA if renegotiation fails (Snavely). Another is the construction of a wall on the southern border of America. It separates the rest of the region from Mexico. He even insisted that Mexico will be paying for it (Christodoulou and Lockett).
Next, we have to know the condition of the Mexican economy. The country is famous for assembling parts into marketable final products such as cars and other machinery. In addition, high-class apparels that only rich people can afford are also being produced in Mexico. The largest part of its exports goes to the United States. According to The World Bank, its economy has increased throughout the year 2015 up to early 2016 but is foreseen to have a decreasing trend.
Mexico is the 3rd largest exporter of goods to the United States (U.S. Trade Representative). These two countries are partners and have a really strong trading relationship. From basic needs, such as foods, to luxury, such as cars, Americans get all of these from Mexico. It is very unlikely for Trump and America to damage the Mexican economy. I really think that Trump proposed the 20% tariff on Mexican goods primarily due to the disapproval of the Mexican president to pay a reimbursement fee that will be used for the establishment of the wall. Since Trump badly wanted to be a man of his words and must make Mexico pay for the wall in any possible way, he imposed the tariff. If Mexico will suddenly increase the selling price of its goods, this would result to American citizens shifting to non-Mexican products. Mexican economy will then be badly affected and one course of action to take is to sacrifice a share of their profits to maintain the selling price, or just slightly increase it.
Hence, it is not in America interests to destabilize the economy of Mexico. Trump just introduced a way to have an additional government fund to allocate for the wall being built. The current events are only due to a change in president of a powerful state. Trump has different views and plans for his country. If his way will cause harm to other countries, it is not intended but just an effect of his attempts in improving America.
Jones, Charisse. “Beer, Snacks and Cars: How a 20% Mexico Tariff Could Cost U.S. Shoppers.” USA Today, Gannett Satellite Information Network, 27 Jan. 2017, www.usatoday.com/story/money/2017/01/26/americans-may-pay-more-beer-snacks-and-cars-build-border-wall/97108358/. Accessed 20 Mar. 2017.
“Mexico Overview.” Mexico Overview, World Bank, 26 Sept. 2016, www.worldbank.org/en/country/mexico/overview. Accessed 20 Mar. 2017.
Christodoulou, Holly, and Jon Lockett. “What Is The Wall and Has President Donald Trump given up Trying to Make Mexico Pay for It?” The Sun, The Sun, 1 Mar. 2017, www.thesun.co.uk/news/2179808/donald-trump-the-wall-mexico-border-cost-congress/. Accessed 20 Mar. 2017.
United States Trade Representative. “Mexico.” Mexico | United States Trade Representative, US Government, 30 Jan. 2017, ustr.gov/countries-regions/americas/mexico. Accessed 20 Mar. 2017.
Snavely, Brent. “Trump Makes It Official: He Will Renegotiate NAFTA.”USA Today, Gannett Satellite Information Network, 23 Jan. 2017, www.usatoday.com/story/money/cars/2017/01/22/trump-makes-official-he-renegotiate-nafta/96918094/. Accessed 20 Mar. 2017.
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