Tariffs on Mexico could deal blow to Houston economy

[Elderberry]

Houston Chronicle by  Erin Douglas and James Osborne May 31, 2019

Houston's biggest industries may be scrambling to manage escalating costs next month if President Donald Trump follows through with his threat to place tariffs on all goods imported from Mexico, Houston's largest trading partner.

The president on Thursday night tweeted that the U.S. will impose a 5 percent tariff on all Mexican goods on June 10, which would gradually increase until the influx of immigrants and asylum seekers at the Mexican border ceases.

If the tariffs are implemented, the impact to Houston's economy would be profound, pushing up costs for everything from automotive parts to Mexican crude oil and food, beverages and produce.

Trade between Houston and Mexico averages $23.4 billion per year, according to estimates from the Greater Houston Partnership, and about 75 percent of U.S.–Mexico land trade, worth approximately $343 billion in 2015, crosses through a Texas port of entry, according to research by the Federal Reserve Bank of Dallas.

The value of trade between Houston and Mexico has gradually expanded since 2016, primarily due to the growth in the price of fuels, oil and refined products. In the last year, trade between the local economy and the Mexico increased 22.7 percent, up to $24.6 billion.

Whether the tariffs will be imposed remains uncertain. Immediately following the President's tweet, Mexico President Andrés Manuel López Obrador responded with a letter requesting the matter be resolved with dialogue. Mexican officials traveled Friday to Washington to meet with U.S. representatives in person regarding the dispute.

More: https://www.houstonchronicle.com/business/economy/article/Threat-of-tariffs-on-Mexico-could-deal-blow-to-13910392.php

[dfwgator]

Then again, maybe not.

[corbe]

    I see a bunch of maids and yard guys asking for a raise in the immediate future.

[IsailedawayfromFR]

Mexico has a lot bigger problem with this than we do.

[Elderberry]

Tariffs on Mexico would cost Texas thousands of jobs, billions to economy: analysis

https://www.houstonchronicle.com/business/economy/article/Tariffs-on-Mexico-would-cost-Texas-thousands-of-13922321.php

Texas could lose over 100,000 jobs if tariffs are levied against Mexico by the U.S., as President Donald Trump threatened on Twitter last week, and could cost the state's economy billions of dollars, according to recent economic analysis.

Each year the 5 percent tariff is in place would create a loss of $41.5 billion to the U.S. economy, the firm estimates, resulting in an overall job loss of about 406,000.

Trade between Houston and Mexico averages $23.4 billion per year, according to estimates from the Greater Houston Partnership. According to local economists, the effect of escalating tariffs on the Houston economy would be particularly negative given the city's strong trade relationship with Mexico. For consumers, goods such as automobiles, gasoline, beverages and produce would likely increase in price if the tariffs are levied.

More at link.

[Wingnut]

Then again, maybe not.

Like really not.