Trade Wars: Trump Builds a Tariff Wall

The Duran Quick Take: Episode 192.

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss US President Donald Trump’s vow to impose tariffs on Mexican imports unless Mexico cuts the flow of migrants to the US.

Mexico’s President Andrés Manuel López Obrador’s has little options as he confronts a danger that could push his country into an economic recession. If the Trump moves forward with the tariffs then Mr López Obrador is constrained by the realities of an unequal trade relationship with the US, which gives him little bargaining power. 80% of Mexico’s exports go to the US, and America invests more than six times as much in Mexico as Mexico does. The US economy is more than 16 times bigger than the Mexican economy.

Trump administration officials have been vague about exactly what Mexico needs to do to avoid the tariffs, which will start at 5 percent and could rise as high as 25 percent.

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