Let’s Talk Mexican Tariffs and Immigration

By Dr. Sal Martingano, FICPA

“President Trump has backed down from imposing a 5% tariff on Mexican imports (that would have started June 10- then increasing 5% per month- up to 25%) after Mexican negotiators agreed to an aggressive crackdown on Central American migrants, and, if the initial efforts fail to deliver swift results, agree to implementing more expansive measures.”

For years, countries have benefited tremendously from U.S. trade, while at the same time, some participated in clandestine operations to capitalize on U.S. intelligence and technology. In addition to unfair trade arrangements with countries, we now can add illegal immigration to the mix.

Immigration takes place in all countries, each with specific laws to insure that nation’s sovereignty. The U.S. is the destination for many because we are a ‘free’ society. As of 2015, the U.S. has over 47 million immigrants, a larger immigrant population than any other country. Immigration was carefully controlled and as a result, our country flourished over time with ethnic and religious groups integrating into American culture.

The slow, insidious takeover of a country has replaced conquering warriors with ‘caravans’- but the result is the same; you lose the country’s sovereignty.”

About 300,000 migrants from around the globe entered Mexico with the intention of illegally crossing into the United States- in the first three months of 2019 alone. U.S. immigration law and policies were designed to accommodate those seeking a better life or standard of living, and even asylum; however, things have changed. People still want to move to the U.S. to start anew but the drug and human trafficking cartels have exploited the good will of the U.S., testing immigration laws in any way possible to overwhelm our countries laws on legal immigration.

Children are being ‘rented’ by caravan bound migrants to take advantage of U.S. immigration laws, used as guaranteed safe passport into the US. Once in U.S. the children are sent back to their country of origin to be re-rented over and over.

Past administrations have ‘talked a big talk’ about controlling immigration but NONE have succeeded. The reason unfortunately, is liberal politics determined to dilute the middle class and create a power base for a socialist agenda.

*This is not radical thinking…the entire liberal Democratic Party is embracing Socialism and demonizing ICE and immigration law.

President Trump understands the consequences of losing a country to liberal politicians in Congress, whose main interest is (potential) voting POWER. Crossing the border on rafts, on foot or storming the borders is not the same as entering a country ‘officially’ as in the Ellis Island immigration days. Congress has refused to act in the best interest of U.S. security. Therefore, President Trump can impose taxes and tariffs on countries to protect national security. Immigration is NOT a manufactured crisis, but a real threat to American sovereignty.

Borders, Language and Culture Define a Country

Partisan politics should have no place in national security. The Bush, Obama, and Clinton administrations all voted in favor of funding a southern border wall to curtail illegal immigration; all efforts have failed.  

Trump’s tariffs are misunderstood. Tariffs are paid for by importers of goods (consumers). In the short run costs for goods and services will rise. Tariffs affect exporters of goods and services (Mexico in this case), by making their products less attractive in favor of other competing markets, including American manufacturing. The result is:

  1. U.S. companies have no financial advantage locating in Mexico and return to the U.S.
  2. U.S. consumers seek other markets.
  3. Mexico loses economic price advantage- which stifles their economy.

Business and politics rarely agree. As we are presently witnessing, political talk is cheap and produces little change. Trump is a businessman who understands the power of economics. Tariffs are business decisions designed to produce economic equality or economic punishment. Political infighting will not solve the immigration crisis, decisive action will.

The U.S. imports $346.5 billion per year in goods and services from Mexico. Mexico just announced they are actively breaking up migrant caravans and forcing people to abide by Mexican immigration law. Amazing how an economic decision produces desired results.


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