It’s a widely known fact, that the U.S. imports most of its goods from other countries. These trade relationships are often put to the test when there are diplomatic problems between the States and other regions. Take for example the Trump Administration’s new tariff proposal. Due to this, we may soon have to pay a premium for our favorite Mexican goods.
The threat of tariffs is Trump’s response to immigrants from Central and South America passing through the Mexican border. The president is demanding that Mexico stop the migration or he will pass a 5% tariff on their exports to the US. Subsequently, this number could increase to 25% by October.
If the United States does enact these tariffs, the goods we get from Mexico are about to get considerably more expensive. For this reason, here are items made in Mexico that could be impacted.
1. NASA Jumpsuits
It isn’t just the iconic NASA jumpsuits that are made in Mexico. All the clothing worn by NASA scientists and space explorers are made in Yucatán, Mexico. The company — Grupo Alsico Promex — also creates special clothing for international chemical laboratories using high tech material and equipment.
2. Fender Stratocaster guitars
There are two versions of this iconic guitar, one made in the US and another in Mexico. It’s a common belief in the music world that the American model is a superior instrument so it already costs considerably more than the Mexican version. A tariff will raise the price of the more affordable model.
3. Colgate Toothpaste
While there are toothpaste manufactoring plants all over the world, two of the most popular brands have facilities in Mexico. Procter & Gamble — makers of both Crest and Colgate — especially claim several of these plants. In fact, in 2011, it invested 250 Million into a full scale Mexian operation. The facility even makes toiletries like Gillette razors and blade refills.
4. Avocados and Other Produce
Avocados — the unofficial fruit of Mexico — are obviously grown down in the southern U.S. but that’s not all. In 2018, Mexico imported $7 Billion worth of veggies and $5 Billion in fruits and nutsto the United States. Do you enjoy tomatoes, beans, corn, squash, mango, pineapple, bananas or any of the many, many things grown in Mexico and sold to the United States? If so, you’ll be paying more because of these tariffs.
5. TVs and Electronics
Asia is known for being the headquarters for many major electronics companies. However, Mexico is actually where these items are built. Specifically, Tijuana has become a hub for electrical manufacturing — producing $37 Billion in 2018 exports. Samsung has their Center for Digital Research and Technological Development in the city. Additionally, Vizio’s manufacturing has been stationed in Mexico since 2015.
6. Precious gems and metals
When the Spanish first came to Mexico, they coveted the riches that the earth had to offer. Fire opals, Mexican emeralds, quartz, gold, and silver are all mined down South. Raw ore is used for manufacturing purposes while refined materials are shipped all over the world to become jewelry.
Tequila is a regional drink native to Mexico. As such, it has protected designation of origin from 40 different countries. This means that they only acknowledge tequila made in Mexico by approved distilleries. In other words, tequila is a commodity that will cost you more if Mexican tariffs get approved.
8. Sugar Cane
After corn, sugar cane is the second largest crop produced by Mexico. The sixth largest producer of sugar cane in the world, Mexico provides more of this product to the United States than any other exporter. If sugar cane faces a tariff, everything from raw sugar to carbonated beverage is going to go up in price.
Two-thirds of all beer exported into the United States comes from Mexico so a tariff will hit the beer industry hard. The largest importer to the States, Constellation Brands makes Modelo, Corona, and Pacifico in Mexico. Dos Equis and Tecate are also imported from down South. Keep this in mind during your next beer run.
10. Printer Ink
While printer ink is made all over the world, Mexico claims the fastest growing market for this workplace necessity. In fact, it’s the second largest region for printer ink production in Latin America. An increase in price due to tariffs will hit all kinds of workplaces from schools and pharmacies to newspapers and shipping stores.
11. Cars and Trucks
The automotive industry is one of the pillars of the Mexican economy. In 2016, it exported over $45 Billion in passenger vehicles and trucks to the United States. Additionally, it sent over $90 Billion in automotive parts to the country. This huge number is twice what the US imported from Japan. Popular brands like Cadillac, Chevrolet, Ford, and Dodge all build in Mexico, too.
12. Fast fashion
Fast fashion is what happens when clothing manufacturers take a new trend and produce replicas cheap and quickly. China used to be the place to have these items made. Recently, clothing brands have discovered that manufacturing in Mexico is much cheaper than in Asia. So, next time you shop, you might notice an increase in price tags.
Cement isn’t just for driveways; it’s a multibillion-dollar industry. North America’s second largest concrete producer, Cemex SAB, is actually established in Mexico. The over 100-year old company has a market value of over $14 Billion.
14. Medical Supplies
While some items on this list are extravagances that can be cut back on, this one could mean life or death. The United States imports $9 Billion in medical devices and supplies. Among the items are syringes, needles, catheters, therapeutic appliances, orthopedics, prosthetics, and mobility devices. An increase in these items can hurt an already struggling American Health Care system.
15. Mexican vanilla extract
Vanilla beans were first cultivated in Mexico. However, finding pure vanilla extract can be difficult as some manufacturers delude it with alcohol or tonka bean extract. Pure Mexican vanilla extract will already cost you a bit more than the alternatives but an additional tariff can make it especially expensive.
Though coffee is grown all over the world, Mexico is the eighth largest grower. It also happens to be the largest source of US coffee imports. The commercialized coffee industry contributes to a number of jobs for both the Mexican and US economies. Increased tariffs will add pennies to the price of your coffee but will also impact everyone along the chain of production.
17. Blue jeans
The United States imports nearly all its clothing. In particular, more men’s blue jeans come from Mexico to the US than any other country. In 2018, the States imported almost $700 Million from Mexico — a whopping 40% of blue jeans it imported in total.
The Mazatlan Post