Tuesday, January 24, 2017

Stronger Dollar Driving The Eventual #TradeWar

Trade wars are never unexpected. Trump promise to make America great again through fair trade won't come as a result of border taxes. A strong dollar, a product of safe haven capital flows from Europe to the United States, will make imports cheaper. This will destabilize America's trade deficit even further. Raising tariffs (border taxes) as a solution will lead to a trade war at the expense of the global consumer. The global consumer, in turn, will blame global governance. Watch the size of the protests grow!

Headline: Mexico set to 'mirror' policy on any U.S. trade tax change: minister

Mexico's economy minister said his country was ready to renegotiate trade rules with the United States and that any change in U.S. tax policy that affected imports would have to be countered with a "mirror action" in Mexico.

U.S. President Donald Trump told a meeting with U.S. executives on Monday that companies would face a "major border tax" if they shifted jobs outside the United States. Such a measure could affect Mexico's exports to the United States, its top trading partner.



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