We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

What Trump's new China, Mexico tariffs mean for your portfolio

1 0 0
03.06.2019

May was the market's first negative month of the year and its first down May since 2012. From President Trump's first tweet that China was backtracking on commitments already made to last week's announcement that the administration was putting a 5 percent tariff on all imports from Mexico, world markets took stair-step moves lower.

I think the administration's message is not just directed at Mexico, but also to Congress hoping to put pressure on politicians to act on immigration as well as the United States-Mexico-Canada Agreement (USMCA).

The U.S. imports about $350 billion from Mexico and exports about $265 billion. With new tariffs, all the usual suspects get hit with autos and auto parts at the top of the list along with air conditioners and TVs.

What's changed here, is that tariffs are now being used to achieve a political outcome. Supporters of the administration who want to see movement on border security will say "why not?", but make no mistake there will be voices even among Republicans that will fight the president on this new direction of the trade war. Senate Finance Committee Chair Chuck Grassley has already come out against the administration's latest announcement saying; "I support nearly every one of President Trump's immigration policies, but this is not one of them."

I understand the president's frustration on immigration. Congress has repeatedly failed the American people and done nothing for the last couple of decades, punting the ball to the next wave........

© Fox Business