Tag Archives: Trade War

President Trump announced his intention to impose a five percent tariff on Mexican imports because of illegal immigration. He vows to keep those tariffs in place until Mexico stops illegal immigrants from entering the U.S. through the southern border.

The proposed move will take effect on June 10 and doesn’t give Mexico a lot of time to react to it. Trump says the levy “would gradually increase until the illegal immigration problem is remedied, at which time the tariff will be removed.” The tariffs could potentially go as high as 25 percent by October 1. The move comes just days after Trump removed the tariffs on steel and aluminum imports that caused direct retaliation against U.S. farm goods. Economists are warning that the move could be extremely negative for both countries.

Bloomberg describes the initial reaction from Mexican officials as “measured.” Mexican President Obrador said in a letter to Trump on Twitter that he “doesn’t want confrontation.” Mexico’s foreign minister and other officials were scheduled to visit Washington D.C. last week in order to come to an agreement.

Mexico’s undersecretary for foreign relations for North America told reporters that Mexico wouldn’t retaliate before discussing the matter with the U.S. However, if Trump follows through on the threat, the undersecretary says that “would be a very serious matter.”

A new report says a nearly $200 million decline in Nebraska’s agricultural exports in 2017 was driven by President Donald Trump’s threats to impose tariffs on U.S. trading partners.

The Nebraska Farm Bureau report attributes the drop to decreases in soybean and corn exports, while beef and pork exports both increased in 2017.

The bureau’s senior economist, Jay Rempe, says Trump’s talks of tariffs in January 2017 caused a decline in soybean and other commodity prices. Rempe points out that China’s retaliatory tariffs didn’t occur until May 2018.

The findings come as Trump imposed his latest tariff hike on Chinese goods Friday. Beijing vowed retaliatory measures.

Rempe says Nebraska’s agricultural community will continue to face pressure unless the administration resolves its trade disputes with China, Mexico and other countries.