Mexico Tariff Opens New Trade Concerns for Markets

The video discusses the White House's new tariffs on Mexico, highlighting the uncertainty and potential economic impact. Experts analyze the political motivations behind the tariffs, particularly in relation to the upcoming 2020 election and the USMCA agreement. The discussion also covers the challenges faced by corporations due to increased uncertainty and the broader implications of using tariffs as a political tool, which complicates trade negotiations with China.

What is the primary concern with the new tariffs on Mexico?

• They will reduce trade uncertainty.

• They are likely to improve US-Mexico relations.

• They are seen as a weaponization of tariffs.

• They are expected to boost the economy.

Why might Trump be using tariffs as a strategy before the 2020 election?

• To decrease the US trade deficit.

• To strengthen his position in Congress for the USMCA pact.

• To improve relations with China.

• To reduce tariffs on European goods.

How did the market react to the announcement of new tariffs on Mexico?

• Futures increased by more than one full percentage point.

• Futures remained stable.

• Futures decreased by more than one full percentage point.

• Futures showed no significant change.

What is a major challenge for corporations due to the new tariffs?

• Increased certainty in investment planning.

• Decreased wages.

• Rising uncertainty and slowing growth.

• Improved trade relations with China.

What is a potential consequence of using tariffs as a political tool?

• It simplifies trade negotiations.

• It makes a China deal easier.

• It increases uncertainty for investors.

• It guarantees economic growth.