Missouri's economy faces ramifications from possible Mexico tariff

3 months 4 hours 3 minutes ago January 27, 2017 Jan 27, 2017 Friday, January 27 2017 Friday, January 27, 2017 6:05:00 PM CST in Top Stories
By: Matt Vereen, KOMU 8 News Reporter
loading

COLUMBIA – With the idea of a tariff on Mexican imports being discussed by President Trump’s administration, Missourians are beginning to wonder at the possible economic impacts on their local community.

Mexico is a major source of imported goods into Missouri, standing at 2nd on the list behind Canada. The types of goods imported vary greatly and span from cars to agricultural products and machinery parts.

Saku Aura, an Associate Professor of Economics at MU, said tariffs run the risk of breaking down the system of global trade and often lead to retaliatory trade actions. While the global economic system has problems, Aura added that most economists agree selectively setting tariffs will mainly hurt the taxing country in the long run.

“Generally I would say you would say you would be very hard pressed to find a single economist who would want to start increasing tariffs for whatever purpose it is,” Aura said.

According to Aura, the tariff would result in higher prices for Mexican products, making them less competitive in the U.S. market. He predicts domestic products would replace some, but most consumers would instead turn to products imported from other countries. Some more complicated products like cars, though, would be harder to replace.

Some local consumers fear the prices on goods would be unavoidable, shifting the economic burden onto the U.S. population. Jerry Thompson, a resident of Columbia, says he thinks the tariff is a bad idea.

“It will irritate the Mexican population and will upset the travel between our two counties. It’s just a generally poor idea and it’s a knee-jerk idea by the President,” Thompson said.

The main argument in favor of the tariff would be to avoid taxing the American taxpayer for the proposed Mexican border wall, but there is no arguing the tariff would still have serious costs for American consumers. Aura says some price hikes on Mexican goods would be tough to avoid and retaliatory measures by Mexico could hit American exporters hard.

“It would be bad news for a lot of producers, but the bigger issue is that products that we used to import become more expensive,” Aura added.

How seriously the Trump Administration is considering the tariff is unknown. President Trump signed directives to build the wall on Thursday, but the source of payment for it is still up for debate.

More News

Grid
List
COLUMBIA - According to a Columbia Police Department press release, officers arrested a suspect wanted by the St. Louis Police... More >>
2 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 4:12:00 AM CDT in News
COLUMBIA - Close to 25 environmental activists from mid-Missouri boarded a bus bound for Washington, D.C. Friday afternoon headed to... More >>
11 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 7:35:00 PM CDT in Top Stories
COLUMBIA - The Missouri Department of Public Safety is preparing to respond to potential dangerous flooding in the forecast beginning... More >>
11 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 7:20:00 PM CDT in Top Stories
JEFFERSON CITY - As prom season begins, the Jefferson City Police Department will start sending out more officers to monitor... More >>
11 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 7:01:00 PM CDT in News
JEFFERSON CITY - Fatal accidents involving drugged driving have surpassed those involving drunk driving, according to a new study from... More >>
13 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 5:36:00 PM CDT in Top Stories
ST. LOUIS — Thousands of workers in St. Louis are preparing to see a jump in pay now that the... More >>
14 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 4:27:17 PM CDT in News
FULTON - Autopsy results confirmed the body found by the Fulton Police Department Monday is 31-year-old Carl L. DeBrodie, the... More >>
14 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 3:51:00 PM CDT in News
COLUMBIA - Some Columbia utility customers are complaining because of recent past due notices sent out for the month of... More >>
15 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 3:29:00 PM CDT in News
JEFFERSON CITY - Lincoln University’s Board of Curators announced Thursday it will suspend tenure and earned advancements for its faculty.... More >>
15 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 3:24:00 PM CDT in News
COLUMBIA - Four teenagers were taken to the hospital Friday morning following a vehicle crash on I-70, according to the... More >>
15 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 2:58:00 PM CDT in News
COLUMBIA – Music enhances and develops the life of 20-year-old Nathan Walton on a daily basis. "I play a... More >>
16 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 2:01:00 PM CDT in News
COLUMBIA – Missouri Task Force 1 sent a team to Southern Missouri to help with the possible flooding in the... More >>
16 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 2:01:00 PM CDT in News
COLUMBIA - The UM System Board of Curators approved amendments to the University of Missouri-Columbia's collected rules governing faculty standards... More >>
17 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 1:32:00 PM CDT in News
COLUMBIA - The pollen count in Missouri is the highest it has been in ten years, but that might not... More >>
17 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 1:23:00 PM CDT in News
COLUMBIA - A pilot program targeting food insecurity wrapped up at Rock Bridge High School Friday. The program, designed by... More >>
17 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 1:06:00 PM CDT in News
SPRINGFIELD (AP) — A Missouri woman has been charged with first-degree involuntary manslaughter in connection to a fatal crash late... More >>
17 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 1:02:00 PM CDT in News
KANSAS CITY, Mo. (AP) — Three people have been charged in the stabbing death of a Kansas man who was... More >>
17 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 12:54:51 PM CDT in News
JEFFERSON CITY - The Federal Emergency Management Agency (FEMA) and state and local agencies held a public meeting Friday to... More >>
17 hours ago April 28, 2017 Apr 28, 2017 Friday, April 28 2017 Friday, April 28, 2017 12:53:00 PM CDT in News
Columbia, MO
Broken Clouds 53°
7am 54°
8am 56°
9am 56°
10am 57°

Select a station to view its upcoming schedule:

Coming Up Next

6:00a
KOMU 8 News Today
7:00a
Today Weekend
8:30a
Naturally, Danny Seo
6:30a
Paid Program
7:00a
Calling Dr. Pol
7:30a
Calling Dr. Pol

Tonight's Schedule

7:00p
2017 NHL Stanley Cup Playoffs
7:00p
Family Guy
7:30p
Family Guy
8:00p
Bob's Burgers
8:30p
Bob's Burgers
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld