Geopolitical Event Analysis: U.S. Tariff on Mexico's Imports

This assignment analyzes the U.S. tariff imposed on Mexico's imports during the Trump administration, examining its broad economic and geopolitical implications. The analysis, based on factual reporting from sources like CNN and BBC News, details the significant impact on both the U.S. and Mexico, including potential job losses in various sectors such as manufacturing and retail. The document highlights the substantial trade volume between the two countries and the potential disruption to supply chains, emphasizing the importance of Mexico as a key supplier to the U.S. economy. It also explores the political motivations behind the tariffs, specifically addressing the issue of illegal immigration. The assignment underscores the potential for escalating trade tensions and the far-reaching consequences for both countries, particularly if Mexico does not comply with U.S. demands. The analysis covers the effects on various sectors, including electronics, oil, food products, and auto parts. The provided references include reports from CNN and BBC News.

Running head: U.S. TARIFF ON MEXICO’S IMPORTS 1
U.S. Tariff on Mexico’s Imports
Name
Institution

U.S. TARIFF ON MEXICO’S IMPORTS 2
U.S. Tariff on Mexico’s Imports
Trump administration global war trade has been extended to its neighboring country,
Mexico. The move is expected to affect not only Mexico but also America. Isidore (2019), a
reporter in CNN, noted that the value of both imports and exports across the border within a
month is $50 billion. According to CNN reports as presented by (Egan, 2019), U.S. will lose
over 400,000 jobs with Texas state being the most affected by losing over 117,000 jobs. The
U.S. market may also suffer a shortage of goods since Mexico is among the top suppliers. This
means once the source of goods is affected, the supply chain of the U.S. businesses relying on
such goods will also be affected. In 2018 alone, Mexico supplied to U.S. goods worth $352bn
(BBC News, 2019). Unlike the trade war with China where Trump increased trade due to its
strict Chinese laws on the American companies operating in China, the war on Mexico is a
different one with Trump administration arguing that its action has been influenced by the
Mexico unwillingness to address illegal immigration.
The trade areas that are likely to be hit by Trump’s trade actions towards Mexico are
manufacturing and retail sectors. For example, the manufacturing sector alone is expected to
contribute to the loss of 50,000 jobs. It is ironical for Trump to strangle the manufacturing
industry, an area which promised to promote as part of his trade agenda (Egan, 2019). The retail
sector will also suffer significantly since the contribution of Mexico in this area is massive.
Within the retail sector, the businesses likely to be affected are clothing and furniture, auto parts
and restaurants, and they are estimated to contribute to the loss of over 136,516 jobs as presented
by (Egan, 2019).
Perhaps the Trump move was influenced by the notion that imports from Mexico are
mainly auto parts and avocados. However, that is not the case since several distributions of

U.S. TARIFF ON MEXICO’S IMPORTS 3
products including electronics, oil, wire, cables, and conductors, food products, air conditioners,
ovens, furnaces, and refrigerators will be affected (Isidore, 2019). Mexico’s import can be found
in any sector in the U.S. economy. The situation likely to worsen if Mexico does not conform to
the U.S. requirements of addressing the illegal immigration since by failing to do so, the tariffs
will be increasing by 5 percent to 25 percent by October. This brings a threating trade situation
between the two countries as well as neighboring states, putting into consideration that Mexico is
one of the U.S. largest suppliers of goods. With the source of U.S. goods being affected, the
supply chain will also be adversely affected, and the entire U.S.-Mexico trade will be interrupted.

U.S. TARIFF ON MEXICO’S IMPORTS 4
References
BBC News. (2019, June 4). Mexico-US tariffs will harm both countries, warn officials. Retrieved
from BBC News: https://www.bbc.com/news/world-us-canada-48507433
Egan, M., (2019, June 5). Tariffs on Mexico could cost America 400,000 jobs, a new report says.
Retrieved from CNN business: https://edition.cnn.com/2019/06/05/business/mexico-
tariffs-job-losses/index.html
Isidore, C., (2019, June 3). Tariffs on Mexican imports will ripple across the US economy.
Retrieved from CNN Business: https://edition.cnn.com/2019/06/03/business/mexican-
imports-us-economy/index.html