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Let the show begin

Let the show begin

Let the show begin
June 07
11:16 2019

Jesus Sanchez Melean

President Donald Trump decided to impose tariffs on all Mexican products starting on June 10th. Trump justifies this decision by using his national emergency declaration issued at the beginning of the year. According to the president, these tariffs would force Mexico to prevent the crossing of migrants into U.S. territory by caravans of immigrants. The Trump administration made specific demands. The American government wants Mexico to detain and deport every single Central American immigrant that enters Mexico through the border with Guatemala. He also wants Mexico to persecute those who organize the migrant caravans as well as the “coyotes” who traffic immigrants to take them to the U.S. Border to cross illegally.

 

Last, but not least, Trump wants Mexico to agree to receive the immigrants that are seeking asylum in the U.S. Marcelo Ebrard, Foreign Secretary of Mexico, explained that Mexico has more than complied with Trump administration’s expectations. According to Ebrard, between January and May of 2019, Mexico has indicted about 450 people for human trafficking. Meanwhile, about 8 thousand Central Americans that came illegally into Mexico have already been deported. 

 

The Mexican official also informed that in the first half of 2019, the Mexican government has granted asylum and work permits to almost 25 thousand foreigners that crossed the Mexican border. The original intentions of these foreigners were to make it to the U.S. Erbrard also reminded that there are 8 thousand people in Mexico who have petitioned asylum to the U.S. and were transported back to Mexico by U.S. Immigration officials.

 

The evidence presented by Ebrard is pretty solid. But it is obvious that Trump is not in the mood to listen. In his most recent Tweets, he said that Mexico was abusing the U.S. and therefore it was time to talk to the Mexicans. “People have been saying for years that we should talk to Mexico. The problem is that Mexico is an ‘abuser’ of the United States, taking but never giving. It has been this way for decades,” he wrote.

 

Trump insisted in imposing his conditions. “Either they stop the invasion of our Country by Drug Dealers, Cartels, Human Traffickers……..Coyotes and Illegal Immigrants, which they can do very easily, or our many companies and jobs that have been foolishly allowed to move South of the Border, will be brought back into the United States through taxation (Tariffs). America has had enough!”, tweeted Trump.

 

Seems like the U.S. President is ready to punish Mexico, despite of the negative consequences this might bring. Nobel Prize American economist Paul Krugman anticipates that imposing the tariffs will create a new wave of illegal immigration. The imposition of tariffs will create unemployment in Mexico, and it will cause more immigration of people of working age to the U.S. due to the lack of opportunities.

Also, Krugman anticipates a commercial war with Mexico that will affect American consumers. These consumers will face inflation and a raise in unemployment. American companies will also lose competitiveness and the most affected will be the farmers from the Midwest that will have to scale back their production as soon as Mexico retaliates against American products.

 

México and the U.S. are economies that complement each other. The U.S. imports from Mexico a lot of consumable items, especially food. At the same time, we receive, from Mexico, items that are critical to the manufacture sector, especially the auto industry in the U.S. This vision Krugman has is shared by a group of Republican representatives in Washington.

 

Krugman has no doubt that this decision by Trump is a new political blunder. It is obvious that we are coming to election time. At this moment, intelligent economic analysis takes the back seat. Trump wants to be reelected. And, just as it happened in June 2015, Mexico becomes the topic that mobilizes and activates an important sector of the population in the U.S.

 

Trump was not able to build the wall. But starting on June 18th, when his reelection campaign officially starts, he is going to blame Mexico for the immigration crisis that he says is taking place at the Southern border. Trump grabbed Mexico once again like a pinata and he will start beating it up. The only thing to do now is to be patient. The 2020 electoral freakshow has begun.

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Edición Virtual | #340 | 6 de junio 2019

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