What will rise in price because of the tariffs for goods from Mexico introduced by Trump?

President Donald Trump announced plans to impose 5% tariffs on goods from Mexico. According to government data, US trade in goods and services with Mexico last year amounted to $671 billion, including $371,9 billion in imports and $299,1 billion in exports. Fox Business.

Фото: Depositphotos

The US trade deficit for the year amounted to 72,7 billion dollars,

Mexico was the third largest US merchandise trade partner in 2018 and the second largest export market.

Here are some of the main products that the US imported from Mexico in 2018 year:

• Vehicles: imports for $ 93 billion
• Automotive manufacturers use parts produced in Mexico.
• Electric cars: imports for $ 64 billion
• Mechanical engineering: imports for $ 63 billion
• The US imports heavy equipment, such as tractors, from Mexico.
• Mineral fuels: imports for $ 16 billion
• Optical and medical instruments: imports for $ 15 billion
• Agricultural products: imports for $ 26 billion, including:
• Fresh vegetables: $ 5,9 billion. Mexico exports a large number of tomatoes, eggplants and cucumbers to the United States. Fresh Fruits: $ 5,8 Billion US imports of 80% avocado consumed in the US from Mexico.
  

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• Wine and beer: $ 3,6 billion. According to the Beer Institute, in the 2018, the US imported 773 million gallons of beer from Mexico, which is 8,6% more than a year earlier and more than any other country. According to the National Chamber of Tequila Industry, in the first 11 months of 2018, the United States imported 172,4 million liters of tequila from Mexico. Mexico also exports large quantities of wine.
• Snacks: $ 2,2 billion
• Processed fruits and vegetables: $ 1,7 billion
• Service imports from Mexico, including travel, transportation, and equipment, amounted to $ 25,3 billion.

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Experts suggest that the new tariffs will primarily affect retailers and manufacturers. Most of the duties will fall on the shoulders of buyers, which will lead to an increase in the cost of the economy by 86 billion dollars, writes USA Today.

The cost of cars will grow by several thousand dollars per car. For example, for a car worth 30 thousand dollars imported from Mexico, you will have to pay a fee of 7500 dollars. Two of the most popular cars in the USA are imported from Mexico: the Fiat Chrysler Ram pickup and the GM Chevrolet Silverado pickup.

Deutsche Bank predicts a rise in the average price of a car to 1300 dollars.

Supermarkets are also at risk. In 2017, Mexico sold $26,2 billion worth of groceries to the United States. Half of Mexican food imports are fruits and vegetables.

Supermarkets will try to mitigate the rising cost of products by replacing imported products from Mexico with imports from other countries, but for some categories of goods this is difficult to do. Almost 95% of imported strawberries come from Mexico. Beer brands such as Corona, Modelo and Dos Equis will also rise in price.

Mexico is also a major importer of avocados. Some of the consequences of the increase in the cost of this product may cover California, delivering local avocados to the stores, but it is expected that in general this product may increase in price by 10%.

In addition to avocados, the US imports from Mexico large volumes of fresh fruits, such as cucumbers, berries, tomatoes, lemons and limes. Prices for all products from Mexico can grow by more than 20%.

New duties could cut US economic growth next year by seven-tenths of a percentage point, says economist Greg Daco of Oxford Economics. This means that the number of jobs will decrease by 600 000.

As reported by ForumDaily:

• In August, 2018, USA introduced new import duties in the amount of 25% for goods from China. The list includes a number of Chinese products with a total value of 16 billion dollars. These duties are the second part of the fees on goods imported from the PRC in the total amount of 50 billion. The first part was introduced on July 6 and concerned goods for 34 billion dollars.
• Trump warned China that, in the case of mirror measures by Beijing, duties could be further extended to goods worth 267 billion. Thus, taking into account the existing measures, duties will be levied on almost the entire volume of Chinese imports to the United States, which exceeds 500 billion dollars a year.
• 20 February 2019 of the Year Trump demanded that China maintain a stable value of the yuan as part of trade negotiations between the two largest economies in the world. In particular, Washington hoped that Beijing would abandon the artificial devaluation of its currency in response to the introduction of US tariffs.
• 11 MAY Trump ordered to introduce customs duties on importing Chinese goods into the United States by about 300 billion more.
• Chinese authorities announced the on the introduction of increased duties on a number of categories of goods from the United States. In accordance with the decision of the State Council Commission on Customs Duties, from 1 June 2019, the rates of duties on a number of goods imported from the US totaling $ 60 billion will be increased and will total from 10 to 25%.

Read also on ForumDaily:

Consequences of the US-China trade war: prices will rise at Costco

'Shock for the American economy': Trump raised the stakes in trade war with China

The trade war with China: a list of stores in the US, where goods are more expensive

Opinion: Trump lost the tariff war with China?

7 products that will cost more due to trade war with China

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