The United States has established itself as a low-cost producer of high-quality manufactured goods that use skilled workers and technology. We compete on service and quality, as well as making the supply chain more efficient compared to importing components by ship from foreign competitors.
The tariffs are setting the stage to reverse this positive global perception and also jeopardize the United States-Mexico-Canada Agreement (USMCA). We have great energy resources like oil, gas, and plastic raw materials produced here. That has also enabled the United States to be a profitable and eligible region to produce goods. Look at all the Japanese, German, and Korean car assembly sites in North America.
Ultimately, tariffs will have negative economic consequences for the consumer, causing the prices of purchased items to rise. The manufacturing industry, which has been championed by this administration, is adversely affected by tariffs and trade wars. The immigration problem is real and the Mexican government is not doing enough to stop the flow across our border. tariffs are not the best option to facilitate the exchange with our southern neighbor.
Overall, I think Mexico’s tariffs will have a bigger negative impact overall on the economy in the long run. The creation of barriers to trade jeopardizes our regional economic cooperation, especially in the automotive sector.
The negative impact on wages, GDP and exports will be felt on both sides of the border if tariffs are maintained.
Charles A. Sholtis, CEO
Plastic Molding Technology Inc.
El Paso, Texas
