Source: Foundation for Economic Education
by Sergio Martinez
“Tariffs primarily hurt consumers. Douglas Irwin, a prominent trade economist, notes that import taxes inevitably reduce a country’s ability to export. Trump’s proposed tariffs would negatively impact US citizens’ welfare as analyzed in detail here and here. But what about Mexico? Roughly 80% of Mexico’s exports — ranging from agricultural goods and manufactured products to automobiles — are destined for the US. Among the most vulnerable sectors is the automotive industry, where supply chains are deeply intertwined. Individual car parts often cross the US-Mexico border multiple times before final assembly. Tariffs would instantly raise the cost of Mexican-made goods, triggering job losses in key industries. The Peterson Institute for International Economics estimates huge losses for Mexico if the tariffs are enforced. Exports account for nearly 40% of Mexico’s GDP. Tariffs would be particularly damaging, given that Mexico’s previous administration oversaw near-zero economic growth.” (03/20/25)
https://fee.org/articles/mexicos-tariff-fest-a-celebration-or-a-warning/