June 03, 2019
FOR IMMEDIATE RELEASE
SAN ANTONIO (June 3, 2019) – The San Antonio Hispanic Chamber of Commerce and the United States Chamber of Commerce speak out to strongly oppose the use of tariffs on Mexican goods in response to the humanitarian crisis along the southern border.
“It is troubling that this administration would jeopardize the economy of the United States by imposing tariffs that will surely damage our trade relationship with Mexico. Mexico is not only the top U.S. trading partner but also our neighbor with whom we share cultural, family and economic ties,” said Diane S. Sanchez, President and CEO, San Antonio Hispanic Chamber of Commerce. “This trade supports economic growth and jobs. The San Antonio community depends heavily on an economic, social and cultural relationship with Mexico. Tariffs are not the right tool to address the humanitarian crisis.”
A new analysis by the U.S. Chamber of Commerce outlines the state-by-state corresponding impact based on the 2018 total value of goods imported from Mexico with the imposing tariffs at the 5%, 10%, 15%, 20%, and 25% levels. “Imposing tariffs on goods from Mexico is exactly the wrong move. These tariffs will be paid by American families and businesses without doing a thing to solve the very real problems of the border,” said Neil Bradley, Executive Vice President and Chief Policy Officer, U.S. Chamber of Commerce in an official press release. “Instead, Congress and the president need to work together to address the serious problems at the border,” he said.
Texas ($5.35 billion tax): Will be hit the hardest impacting businesses, workers, and families. In total, Texas imported $107 billion worth of goods from Mexico in 2018. A 5 percent tariff would threaten $5.35 billion of state imports while a 25 percent tariff would threaten $26.75 billion of state imports. These tariffs hurt companies, especially small businesses. International trade represents 31 percent of our GDP, higher than any other state in the nation. In the agriculture sector alone, 37 percent of Texas’s exports go to Mexico. Twenty-Five per cent of what the United States consumes comes from Mexico. Over $671 billion in goods and services were exchanged between the United States and Mexico in 2018.
The use of retaliatory tariffs in response to a humanitarian crisis is not the solution to the problem, but instead creating a new and greater problem. With the possibility of tariffs increasing up to 25 percent, the way business is conducted between the United States and Mexico will change forever. Global supply chains are changing due to tariffs and the United States does not fare well when this occurs. This phenomenon happens because the North America trade bloc produces goods and services together as one. No longer is it about selling finished goods to one another. The North America trade bloc is considered a major supplier of goods and services to the world.
If we can’t make deals and work with our neighbors, we won’t be able to work with others across the globe.