Breitbart News economics editor John Carney said Tuesday on Fox Business Network's “Kudlow” that President-elect Donald Trump promises to impose tariffs on products from Mexico, Canada and China on the first day of his administration. In response, Mexico said it had no intention of starting a trade war. .
Guest host David Assmann said, “Some professors are screaming that this is going to cause inflation. Well, that wasn't the case last time. So it's not that it caused inflation. It's not like we ended up with inflation. I mean, it's possible, you never know. I mean, there was a trade war in the Smoot-Hawley era, but this is it. It’s a far cry from Smoot Hawley.”
“Mexico is not going to go to a trade war with the United States,” Carney said. “I understand that you can't do that if you're the president of Mexico. You don't want to seem like you're just going along with Trump's demands for domestic consumption.” Probably not. So you stand up a little bit. As you know, 83% of Mexico's exports go to the United States, and only a small percentage goes to Mexico. They rely on the US market for their entire economy. About a quarter of their GDP is exported to the United States. So if there is a trade war, Mexico loses from day one. They know this and are not going to start a trade war. It’s a ploy.”
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