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Home / World / Trump's comments on the border show that he does not understand how the trade works

Trump's comments on the border show that he does not understand how the trade works



At a brief press conference held on Friday afternoon in Mar-a-Lago, President Donald Trump said closing the border with Mexico was a "profit-maker" neighbor because of the US trade deficit with the South.

"I just close the border, and with a deficit, as we have with Mexico and have had for many years, closing the border will be a profitable operation," Trump said after announcing the withdrawal, Linda McMahon, Administrator of Small Business, was the main purpose of the press conference.

But that's not like that at all Trade Works

As Voxs Dara Lind explained in an article on the threats Trump had made on Twitter on Friday to close the border: "[i] f Mexico does not immediately stop ALL immigration passing through our southern border the United States is coming "Borders would disrupt supply chains and import / export flows and cause an economic catastrophe:

Closing inland ports would be an economic disaster. This would also disrupt the lives of frontier communities relying on the flow of people between the US and Mexico – including the major cities of San Diego (and Tijuana) and El Paso (and Ciudad Juarez).

About 1.5 Trade in Billions takes place daily at the US-Mexico border. Nearly half a million people cross the border legally every day [onlyTexas].

Even the depletion of port capacities or the temporary decommissioning tend to panic in the business world and local residents. El Paso is currently concerned that long waiting times in ports could be prolonged as agents are assigned to look after unauthorized migrants. When San Ysidro's San Diego Port of entry closed down in San Diego for a few hours in November, when the agents responded by force (including tear gas) to an organized march of asylum seekers, the temporary closure cost [5] $ 5 million . (19659011) According to the US Trade Representative's Office, Mexico is the US's third largest trading partner, with over $ 615 billion in total trade in goods and services in 2017. The US total deficit against Mexico This year it was 63.6 Billions of dollars, an estimated 1.2 million American jobs are based on trade between the US and Mexico.

Even short closings at the borders have significant negative consequences. When the port of San Ysidro in San Diego was shut down last November for five hours following an unfortunate march on the Mexican side, the San Ysidro Chamber of Commerce estimated that American companies cost about $ 5.3 million.

Trump may believe that American jobs are better guarded by protectionist trade policies – protectionism is a distinguishing feature of Trump – but he has a long history of misunderstandings about how these policies actually affect the US economy, or that they make false misstatements about trade deficits. He has repeatedly propagated false figures on US deficits and shown ignorance that deficits are calculated on both goods and services, not just goods.

Trump has tried to reduce the deficits by introducing tariffs on imported goods, but he does not seem to understand that tariffs are actually taxes on US importers, not on foreign governments. And recent figures show that Trump's trade wars not only do not reduce deficits but actually do the opposite: the US trade deficit of $ 891.3 billion in 2018 was the highest in history.


The news is moving fast. To stay up to date, follow Aaron Rupar on Twitter and read more about Vox's Political and Political Reporting .


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