Trade War Consequences

Trump has declared a trade war on China (among others) and outcome is benefiting a country that he has used in the past…..Mexico.

Remember Mexico…that country that would pay for his damn silly border wall? They will not!

But since he has seen fit to declare this trade war Mexico will benefit the most.

The Trump Administration’s trade war with China has turned out to be a windfall for another country the president frequently berates: Mexico.

Consider Fuling Global Inc., a Chinese maker of plastic utensils that developed a lucrative business making paper cups and straws for U.S. restaurants. But President Trump upended all that with tariffs on $250 billion worth of Chinese imports, including paper products. So the company found an alternative, opening a $4 million factory in Monterrey, Mexico, that will soon begin shipping millions of paper straws across the border.

“We had to look for other ways to do business,’” said Fuling Chief Financial Officer Gilbert Lee. The move means the Wenling, China-based company will avoid the tariffs and make up for pricier Mexican labor with lower shipping costs. “Mexico is a very logical and advantageous location for us.”

https://www.bloomberg.com/news/articles/2019-03-27/who-is-winning-trump-s-trade-war-with-china-so-far-it-s-mexico

We keep waiting for the return of our manufacturing jobs (that will never return but we were promised) to all that cash that would return from offshore (to be fair some of the cash has come home but not enough)….

Trump’s trade war is not helping Americans in the least…..but Mexico will make out like the bandits they are accused of being (that is sarcasm not a pronouncement).

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