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The U.S. closed the southern border to Mexican trucking last week,
a violation of the North American Free Trade Agreement.
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Yesterday, Mexico retaliated by raising tariffs on nearly 100 U.S. products. The new tariffs will range from 10% to 45%.
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Even though a pilot program proved that Mexican carriers are as safe as any on U.S. roads, the Teamsters union demanded that Democrats kill the program.
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The Democrat-controlled Congress obliged last week and Mexico's retaliation was swift.
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Trade wars can be devastating to an economy. The Depression-era
Smoot-Hawley Act resulted in a catastrophic decline in exports.
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After it became law, exports declined dramatically and unemployment rose from 3.2 percent in 1929 to 8.7 percent in 1930 and peaked at 24.9 percent in 1933.
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Mexico is America's third largest trading partner and the new tariffs will affect around $2.5 billion in goods scattered throughout this country.
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California's economy will be especially affected. Its exports of fruits, nuts and Christmas-trees will be hit with tariffs of between 20% to 45%. Oregon will be similarly affected.
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Washington state will also suffer at the hands of the Teamsters. 40% of all American pears go to Mexico and will now face a 20% duty.
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Wisconsin exports $128 million annually to Mexico, to which it must now add $25 million in tariffs.
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New York's $275 million in exports will be likewise hit with duties of over $55 million.
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Illinois ships roughly $120 million in goods to Mexico and must pony up about $24 million extra.
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With the costs of these goods now priced uncompetitively for Mexican businesses, they will substitute alternative products from Canada, Europe and Latin America.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlMqJcG4qzNU8a2mcixy-e8b5b-qYvGHezyrcNdj4FprkUu_fmuu6AxwSeMM7t2Vk2jHOXPLIG0kErXXdm1ZrwRdS8oWJoIXcD7CJwH2WJsz7X9RdwGAATDKaK3AHxxpjWPdPi/s400/090319-obama.jpg)
U.S. exporters will suffer because of the Democrats' willingness to sell their souls to the Teamsters. The results are easy to predict: increased unemployment, reduced household incomes, and more mortgage foreclosures.
In other words: change.
Based upon: Mexico Retaliates.
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