What Trade War With Mexico May Mean

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A border tax would hurt foreign companies that rely on cheap Amercian labor in Mexico would get hurt first, and then the increased costs will get passed on to the US consumer. This is all part and parcel of going after Mexico via a trade war/ This also doesn't take into consideration the fact that Mexico purchases a lot from the USA as well.

We sell computer peripherals, computer chips, electrical appliances and electronics to Mexico. Hypothetically, Mexico could put a border tax on these goods coming from the US and buy these products from China, Taiwan and Korea - who have become much more proficient at building these things at costs lower than that offered from the US. Eaxmples are:

  1. Samsung
  2. LG
  3. Huawei, and their Hisilicon chips used in their midrange and high end smart phones. 

These will come directly out of the revenue streams of US manufactuers.

Then there's the immigrant deportation issue. Pushing deportation to Mexico would bite those industries that rely low cost immigrant labor. Examples include:

  1. restaurant industry
  2. construction
  3. manufacturing
  4. Home renovation
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