With talk of a 20% import tax, what items does the U. S. import from Mexico that could make an impact on the prices U. S. consumers will pay?
The Trump administration’s proposal to impose punishing tariffs on Mexico, rising to 25% over the course of just a few months, took many trade experts by surprise. Some economists even predict a recession if an agreement isn’t reached by the fall, when the full tariffs would start taxing billions worth of consumer and industrial products crossing the southern border.
To understand the concerns, it helps to look at the flow of goods between the two countries. Mexico is now the U. S.‘ largest trading partner, surpassing Canada last year to take the top spot. The U. S. imported $372 billion worth of products from Mexico in 2018, according to government trade data. The top category was cars and car parts, most of them by American automakers and intended for the U. S. market. The U. S. also relies heavily on Mexico for machinery, furniture and produce.
