The U.S and Mexico trade may come to a halt in a week. The auto production in the US could face a massive reduction in sales once Trump enforces the border closer proposals. Mexico will also be affected since it is one of the largest exporters of avocados and tomatoes and most of the auto spare parts to the US. Prices are also projected to hike due to low supplies.
The president of the united states, Donald Trump, has not yet provided enough details about his threat to close the border as a move to solve the illegal immigration headache. If he follows through the threat, both Mexico and the US economy will be affected adversely. The border trade between the two countries fetches about 1.7 billion per day.
The president, later on, indicated he might order the closure of large sections of the border if Mexico did not act on the constant flow of immigrants from central to North America through Mexico. He however still maintained that he could again order full closer of the border.
Expert analysts say that the proposed border closure will interfere with the economy of us and Mexico especially considering how the chain of supply between the two countries is tightly integrated.
The threat to close the border has already led to an increase in the price of Avocados in the city of Mexico. By Monday, Mexican Hass avocados’ price had risen by 34%. The U.S consumes about 80% of the avocados produced in Mexico.
Mexico is the largest exporter of farm foods for the United States and the largest supplier of auto spare parts for car manufacturers in the U.S.
Sarah Sanders, the press secretary in the White House, said that the president did provide information on when he intends to close the border. He has however cooled down the threat by stating that Mexico is stepping up measures to apprehend immigrants in its southern border.