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You are aware of NAFTA – the multilateral free trade agreement between the United States, Canada and Mexico. The NAFTA currently allows duty free movement of most manufactured goods between these countries.
Last year, the United States government noted that it was planning to impose a 20% tax on all imports from Mexico. The U.S. deficit with Mexico was $58 billion back in 2015.
Experts say a tariff would raise a mountain of concerns about U.S. jobs and the prices of products. CNBC (on January 27th) reported, “American consumers may have to pay more for products ranging from Toyotas to vegetables to beer if a proposal floated by the United States to impose a 20% tariff on Mexican imports goes into effect.” Huffington Post noted (on January 26th), “if enacted, such a tariff would likely raise prices for American consumers, as well as violate the North American Free Trade Agreement, inviting retaliatory tariffs from Mexico on American goods.”
As an international business student in this course, please state your opinion about this matter. Do you agree with the experts? Take a position and support your position with evidence by citing appropriate sources.
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