A very drinkable beer from south of the border.
President Trump has repeatedly groused that Mexico isn't doing enough to stop the flow of Central American migrants traveling through Mexico on their way to the US border. He's probably correct. Predictably, in Trump world the solution to this very real problem is to threaten the imposition of tariffs on $350 billion of imported goods from Mexico.
For illustrative purposes let’s say that a case of Modelo® Especial Beer - 24pk / 12oz cans – normally retails for $30.00. The President believes that if the Republicans charge me an additional tax (tariff) of $1.50 (rising to $3.00 in October) on each case that this will solve the migrant crisis at the border.
Excuse me for being dense but I'm struggling with drawing a connection between raising taxes on a guy in Wisconsin and refugees and immigration – legal or otherwise. To say nothing of the increased costs of the avocados. The first universal truth is that the President has expanded his repertoire and has embraced the threat of tariffs not to impact trade - but as a cudgel to impact policy. Visualize a future Democratic president using the threat of tariffs to enforce climate policy. That's an interesting discussion in and of itself yet for the present another Republican tax increase has been averted. I digress.
The second universal truth is that this overly dramatic reality show plot is exactly that. It's nothing but fabricated drama. A contrived crisis. Theater. It's all for effect because the third universal truth is only a fool would implement such a threat as it would lead to the loss of hundreds of thousands of American jobs and tank the economy directly into a recession. If only I could have been a fly on the wall when GOP leadership explained to the president the error of his ways. Nevertheless, the spectacle is predictably Trump.
Bottom line is over the next 90 days Mexico will make a show of deploying National Guard troops to the Guatemalan border, asylum-seekers will continue to be returned to Mexico to await adjudication of their asylum claims and the United States will accelerate the implementation of a $5.8 billion aid package of investment and development programs in Central America and Southern Mexico. And not much will change other than another act in our continuing national reality show will have played on the world stage. Take note - we still do not have a trade agreement between the U.S. and our friendly neighbors to the north and south to take to congress for ratification. The fourth universal truth is we've got an imbalance of drama versus actual progress. We are certainly living in interesting times.
For the record beer is included in the top twelve commodities exported from Mexico to the U.S. - amounting to $3.6 billion dollars in 2018. So help yourself to a frosty cerveza and enjoy the next act.
Cheers!
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