2019 Jun 01 - Mexico Trade Tariffs

The US trade war escalated this week as President Trump announced a new 5% trade tariff on Mexico. It's 5% on everything coming over the border and that rate is primed to go up faster than Boris Johnson's upcoming legal bill with analysts saying it could quickly ramp to 10%, 20%, 40% maybe. Very much like when I'm making margaritas.

The US-Mexico tariffs: ostensively it's to do with immigration and paying for a border wall, in reality it's likely got a lot to do with diverting the news from the Chinese trade war which has been getting perilously close to the bit where newsreaders start to discuss inescapable supply chains and it starts to make it look like it may be a worse deal for consumers than that time that Samsung tried selling $2k foldable phones that broke when you folded them. Mexico however, its largest exports to the US are vehicles and machinery, most of which is from US owned companies who outsourced 10-20 years ago, so the emphasis is really on relocating those manufacturing jobs back to the US. Although given how corrupt the system is, it could equally just be that the grain whisky producers want to destroy the tequila market in much the way that they destroyed my memory of last Sunday afternoon.

If I were in charge, I'd avoid all this and get rid of the tax deductiosn companies receive when they outsource. Whatever happens though, a lot of this is being done with zero oversight and perhaps it might work out well in the end but it seems like there's a lot on the line here. It's like writing me a large cheque to come to a party as a balloon modeller, and I've guaranteed I can make animals, but then on the day it turns out that all I know how to make are snakes, balloon snakes. And I've already cashed the cheque and spent the money on a new wall by now and some gin, because that isn't subject to the aforementioned import tariffs.
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