So Little Trumpy imposes a 20% tariff on goods imported from Mexico. Who do you think will be paying that tariff? American consumers that's who. Every Mexican exporter will have to add at least 20% to the wholesale cost of their goods sold to American importers to cover the cost of any tariff as well as any administrative cost associated with a tariff.
Chances are Mexico will do exactly the same thing by charging American exports a 20% tariff and since Mexico imports more products from the US than it exports to America, Mexico will make more money on tariffs than the US.
People on both sides of the border will loose their jobs and because of the trade deficit more Americans will loose their jobs than Mexicans.
How's Trumpy going to explain that to his supporters?
And aren't Trumpy's negotiating skills proving to be superior? Invite the president of Mexico to come to Washington and then announce that Mexico will pay for the wall whether they like it or not.and when the Mexican president says no, Little Donnie Trumpy says, then don't come and the president of Mexico cancels the trip. Great negotiations! Way to keep discussions open Donnie. Little Donnie can bully his own suppliers but it doesn't work when you're talking to other countries.
Now lets talk about cars. Donnie wants American cars to be built in America, by Americans using American parts. But the American car makers want to sell their cars in other countries. So why the hell should countries like Canada, Mexico, China, etc. allow American car companies to sell their products in their country without getting a piece of the action by imposing huge tariffs. American car companies depend on selling their cars abroad to make a profit (More American cars are sold outside America than in America.). If tariffs are imposed on the importation of American cars once again it will be Americans who loose their jobs.
