Mexico tariffs would be bad for denim-loving Americans
If Donald Trump goes ahead with his threat to impose a 5% tariff on all goods coming from Mexico, Americans are likely to feel the effects on a wide range of products. There are the well-known targets, such as avocados, alcohol, and cars. And then there are plenty of other goods that Americans may not realize come to the US from Mexico.
For instance, the tariff would punch a lot of American guys right in the blue jeans.
The US, which imports nearly all its clothing, gets more men’s blue jeans from Mexico than it does any other country. Last year, the US imported about $691 million worth of men’s blue jeans from Mexico, according to US government data. Its imports from China totaled about $227 million by comparison. A new tariff would raise costs for all US clothing brands making those jeans in Mexico and then importing them, leaving those companies to decide whether to absorb the expense or, more likely, pass it onto consumers by increasing prices.
“Additional levies on US companies for imports would result in higher inflation hurting consumer spend,” Poonam Goyal, a Bloomberg Intelligence senior retail analyst, told Bloomberg (paywall). “That could hurt sales for key denim makers like Levi, American Eagle, Wrangler, and Lee if they manufacture denim [in Mexico].”
https://www.msn.com/en-us/money/markets/mexico-tariffs-would-be-bad-for-denim-loving-americans/ar-AACnf4Z?li=BBnbfcN
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