At the start of the Bush administration to keep a political promise the president imposed tarriff on foreign steel. This created retaliation and trouble until they were removed.
The Obama administration has made the same mistake in terms of Truck safety and Mexico is hitting back:
A long-simmering trade dispute boiled over into sanctions on Monday after Mexico said it would raise tariffs on $2.4bn of US exports in retaliation for ending a pilot programme to allow Mexican trucks on American roads.
This has been stewing for a while:
Mexico said it would increase tariffs on 90 industrial and agricultural goods, likely to include politically sensitive farm products, after Congress last week killed a pilot programme allowing a limited number of Mexican trucks on American highways. Mexico obtained a judicial ruling in 2001 under the North American Free Trade Agreement (Nafta) allowing it to impose such sanctions, but has held off since the US introduced the pilot scheme.
Trade wars are never pretty and anything that costs jobs and the Mexican tariff’s will should be avoided at a time like this.
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