Missouri's economy faces ramifications from possible Mexico tariff

1 year 6 months 3 weeks ago Friday, January 27 2017 Jan 27, 2017 Friday, January 27, 2017 6:05:00 PM CST January 27, 2017 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
(CNN) -- Former CIA director John Brennan said Sunday that he was willing to pursue legal action against President Donald... More >>
34 minutes ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 9:23:19 PM CDT August 19, 2018 in News
(CNN) -- Federal investigators examining whether President Donald Trump's former lawyer Michael Cohen committed bank and tax fraud are looking... More >>
1 hour ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 8:01:59 PM CDT August 19, 2018 in News
Indiana ( WRTV ) -- Hundreds of students walked out of the Andy Gross show Saturday night at Purdue University... More >>
2 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 7:30:19 PM CDT August 19, 2018 in News
CAPE GIRARDEAU (AP) — Students in one Southeast Missouri State University dorm who don't want to leave their dogs or... More >>
6 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 3:09:00 PM CDT August 19, 2018 in News
NORTH KANSAS CITY (AP) — A Kansas City-area school district that garnered national attention when a transgender student was crowned... More >>
7 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 2:47:00 PM CDT August 19, 2018 in News
KANSAS CITY, Mo. (AP) — Kansas and Missouri officials hope to attract the nearly 700 well-paying USDA jobs that are... More >>
9 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 12:17:10 PM CDT August 19, 2018 in News
ST. LOUIS (AP) — Prosecutors say they will seek the death penalty for a St. Louis man charged with killing... More >>
10 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 11:50:00 AM CDT August 19, 2018 in News
ST. LOUIS (AP) — Parts of Missouri are so dry that corn crops are suffering and hay for cattle is... More >>
10 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 11:44:16 AM CDT August 19, 2018 in News
SEDALIA (AP) — Officials say a worker injured near Sedalia in west-central Missouri has died. The Sedalia Democrat reports... More >>
12 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 9:01:36 AM CDT August 19, 2018 in News
COLUMBIA - The University of Missouri Police Department is investigating a sex offense report on Saturday. According to a... More >>
22 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 11:00:00 PM CDT August 18, 2018 in News
MILLER COUNTY - The Miller County Sheriff's Office reported that suspected shooter Devin Mckie is in custody after being arrested... More >>
23 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 10:36:00 PM CDT August 18, 2018 in News
BOONVILLE – About 100 people rode their bikes early Saturday to help raise funds for the 43rd annual Missouri River... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 2:23:00 PM CDT August 18, 2018 in News
PLATTE CITY, Mo. (AP) — Sheriff's deputies in northwestern Missouri's Platte County say they've seized more than 200 pounds of... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:48:56 PM CDT August 18, 2018 in News
BLACK JACK (AP) — A baby bobcat found in eastern Missouri and being nursed back to health might be mistaken... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:42:55 PM CDT August 18, 2018 in News
ST. LOUIS (AP) — Funding cuts to in-home care for the disabled could force some Missouri residents into nursing homes,... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:34:39 PM CDT August 18, 2018 in News
COLUMBIA - The North America Diving Dogs dock diving competition was in its second of three days Saturday at the... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:01:00 PM CDT August 18, 2018 in News
COLUMBIA - The Columbia Police Department is investigating an attempted burglary of an off-campus sorority house near MU. In... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 11:01:00 AM CDT August 18, 2018 in News
MOBERLY - The Moberly Police Department is currently investigating an armed robbery of Break Time North, 1210 East US 24.... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 10:18:00 AM CDT August 18, 2018 in News
Columbia, MO
Broken Clouds 74°
10pm 75°
11pm 74°
12am 74°
1am 74°