In a gauge to check illegal immigration, US President Trump has threatened to close the Mexican border. He took his rage on twitter and wrote, “If for any reason Mexico stops apprehending and bringing the illegals back to where they came from, the U.S. will be forced to Tariff at 25% all cars made in Mexico and shipped over the Border to us. If that doesn’t work, which it will, I will close the Border.”
Although the economists are not on the same page with President Trump, as they termed this as disastrous for the economy of United States of America.
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Gary Hufbauer of the Peterson Institute for International Economics said, “What Trump is talking about now, shutting the southern border, would be catastrophic. It just absurd.”
The North American Free Trade Agreement (NAFTA) eases trade by cutting tariffs and reform regulations. Reports citing data from the US Chamber of Commerce said nearly $1.7 billion of goods and services flow across the Mexico border daily. These include jeans, cars, flat-screen TVs — and avocados, adored to many Americans.
Cars, Television and hardware
As per the report, it is the US manufacture that will be the biggest victim of border closing. US industries highly depend upon Mexico either in the form of selling goods to Mexico or using their material. Mexico is also the third largest trading partner of the United States importing $349.6 billion from Mexico in 2018, and exporting $265 billion.
Foods and vegetables
The 80 percent of much loved Avocado is supplied by Mexico to the United States. Other fruits and vegetables like strawberries, grapes and mangoes. Mexico relies upon US for soya beans, corns and dairy products.
Threat of more migration
Hufbauer, of the Peterson Institute, said, “If anything like this happens, it would promote more poverty in Mexico, which would then turn into more pressure on immigration in the US.”