NEW YORK – The Trump administration's expansion of the global trade war to Mexico could have harsh economic consequences for American workers, especially in Texas.
If the 5% U.S. tariff on all goods from Mexico takes effect and is maintained, more than 400,000 jobs in the United States could be lost, an analysis released this week found.
The tariffs on Mexico, set to go in effect on Monday, would cost Texas alone more than 117,000 jobs, according to the analysis by The Perryman Group, an economic consulting firm. Texas is Mexico's largest export market, making the two economies closely intertwined.
"To impose tariffs on all goods from our largest trading partner will cause significant cost increases and other harms to the economy," Ray Perryman, the CEO of the Perryman Group, wrote in the report. "The fallout could be much greater over time."
Major Wall Street firms have not yet released estimates on job losses from the tariffs on Mexico, reflecting the surprise nature of the trade tensions.