To circumvent tariffs imposed on its exports to the United States, China is increasing its use of Mexico as a conduit. Beijing’s particular focus is on its automobile export market.
Its motive isn’t complicated. Cars and car parts imported from Mexico face tariffs of 0%-6%. Meanwhile, cars and car parts imported directly from China pay 25%.
As China struggles to boost economic growth, a strategic priority for Xi Jinping’s Communist Party, tariff evasion makes good sense. But from America’s perspective, it should be unacceptable. The U.S. should force Mexico to ensure it is not helping China undermine U.S. tariffs.
The U.S. import market is too important to Mexico for President Andres Manuel Lopez Obrador to ignore. According to the World Bank, U.S.-destined exports account for 78% of Mexico’s export market. Even a small reduction would cause significant harm to Mexico’s economy. While Obrador’s preferred candidate is leading in the polls for the June presidential election, economic strife with the U.S. might threaten this lead.
The U.S. could warn Mexico that unless it introduces legislation to ensure Chinese conformity with U.S. tariff payments, Washington will slap tariffs on one or more of the big three Mexico-to-U.S. export sectors. These are the automobile, machinery, and electrical equipment sectors. Exports approach 45% of Mexico’s total gross domestic product. The country could not easily tolerate even moderate U.S. tariff actions.
Chinese-manufactured cars are not as problematic as the…
Read more@TautPublicPolicyRepublican2mos2MO
Mexico is responsible for sending fentanyl into the U.S., not China.
@HeronJohnnyNo Labels2mos2MO
It’s been widely reported that American citizens smuggle in the bulk of fentanyl that gets into the US.
No surprise that it's American "entrepreneurs" who are the fentanyl smugglers. Primary blame still rests with the buyers. Free country. If people want to die using fenynl or a glock, USA allows. No monitoring medicine cabinets. Keep Republicans out of our bedrooms and bathrooms.
@HeronJohnnyNo Labels2mos2MO
Problem is many don’t know they’re taking fentanyl. They’re told it’s oxy or coke or something. Not good but the point is stopping it at the border is not the fix. Education is: buy edibles legally…no pills for thrills, et
@SomberPorpoiseDemocrat2mos2MO
It’s BOTH their fault.What is scary is that our media never reports that we fought wars over the border with Mexico -or notice academic activists talking incessantly about opium wars & giving smallpox infected blankets to indigenous peoples—not noticing incitement to hate/revenge
@TautPublicPolicyRepublican2mos2MO
Sorry china is in with the cartels most of it is made in china it also comes through mail
@SparrowScarlettPatriot2mos2MO
I was under the impression that China was still sending the fentanyl, precursor chemicals to Mexico.
@TautPublicPolicyRepublican2mos2MO
The fentanyl wouldn’t flow if Americans didn’t buy it. It’s called root cause. Remember ?
@L1beralPumaLibertarian2mos2MO
Tariffs often cause more trade diversion than trade protection. Well known globally. Yet the wrong rhetoric always wins out.
@ArtisticDiplomatLibertarian2mos2MO
Avoidance by China, and Opportunistic by Mexico.
@Patriot-#1776Constitution2mos2MO
This year, there will be an election in Mexico that will oust its socialist Dictator. Two far-leftists will be eliminated in the Americas – and Trump & the New Mexican President can work together to end these evils, just like Mexico worked with Trump last time around.
@T3rritorialSidLibertarian2mos2MO
This is nonsense!
The Fortworth Airport is actually the Texas end of the largest in-land port system in earth, where for nearly 30 years, China established a “just-in-time” delivery centre for electronics, including 95% of smart phones, auto and medical electronic components!
@ISIDEWITH2mos2MO
@ISIDEWITH2mos2MO
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