On Firday, Investors.com posted an article about the end of the 'time-out' imposed on Mexican trucks operating in the United States. The 'time-out' was imposed two years ago.
The article points out that:
"That's a good thing, because it will restore U.S. trade ties with our third-largest trading partner to normal. And it won't be tough for Mexico to measure up. Contrary to common perception, legal Mexican trucks have consistently passed U.S. safety inspections, outperforming even U.S. trucks. Since 2003, just 1.2% of Mexican truck drivers on U.S. roads were not out of compliance; for American drivers, the figure is 7%."
The article states that as the trade with Mexico returns to pre time-out levels, the lifting of the restrictions will save United States companies approximately $400 million in transportation costs.
The article points out:
"Shutting the Mexican trucks out may have pleased labor unions, but it cost literally tens of thousands of American jobs in 43 states. Washington apples, California grapes and Dakota wheat all got socked with these self-inflicted tariffs. The U.S. Chamber of Commerce estimates about 28,000 jobs were lost.
"With U.S. firms paying $2.4 billion in useless tariffs each year, money that could have been spent to upgrade equipment, boost sales or hire workers went to Mexico's government coffers instead."
When we reneged on our previous agreements and put a 'time-out' on the trucks, Mexico placed $2.4 billion in tariffs on 99 U.S.-made products in retaliation. Hopefully an end to the shutdown will mean an end to the tariffs.
Trade wars for any reason are a really bad idea. Hopefully we will learn from this experience.
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