Trump Dilemma on NAFTA - Part 1
posted by Richard Katz on November 28, 2016
Found in China, US, categorized in International Trade and Investment
The “Rust Belt” states, are far more dependent on trade than the US as a whole. And this dependence includes all the imports that provide indispensable inputs to their own production
In his latest alert, Richard reports that Trump’s dilemma is that voters won’t like consequences of what they asked for: withdrawal from NAFTA and high tariffs against China would cause enormous dislocation for firms producing in the US; 40% of all US imports from Mexico consists of US content embodied in Mexican goods and the blue states that Trump turned red in this election, some by very thin margins, are very dependent on both exports to NAFTA and China, and imports from them.