Trump's Trade War With Canada Helps Mexico at America's Expense
President Donald Trump's trade war with Canada is causing unintended consequences, including helping Mexico's economy at America's expense. According to Jonathan Cohn of The Bulwark, Trump is taking a harder line with Canada than with Mexico, which could lead to more imports from Mexico and harm the auto industry in Michigan.
Michigan State University professor Jason Miller explained that distance still matters for manufacturing, especially for goods that weigh a lot. With tariffs on Canadian vehicles going up, there will be more imports from Mexico, but suppliers in Michigan won't be able to supply them as easily due to the distance.
This could have long-term consequences for the auto industry and the state of Michigan. Voters in Michigan disapprove of Trump's tariffs on Canada by a two-to-one margin, according to polls from the Detroit News and local station WDIV. Democrat Abdul El-Sayed is using this issue in his Senate campaign against Republican candidates.
Experts agree that Trump's trade war with Canada has harmed America's long-term economic health. Dr. Robert J. Shapiro, a former economic adviser to President Bill Clinton, said that the uncertainty caused by tariffs makes it harder for companies to invest and produce goods.