Will Trump Closing the Border with Mexico Help US Trade? Who Gets Hurt?

A potential closure of the US-Mexico border could lead to significant consequences for both countries. Here, we explore how a border closure would affect trade and the livelihoods of workers on both sides of the border. Will Trump's closing of the border aid US trade, or will it cause more harm than good?

The Economic Fallout

Americans and Mexicans Both Suffer: The impact of a closed border would be felt by both American and Mexican citizens. American merchants who sell billions of dollars in goods to Mexico would lose access to this market, resulting in job losses for thousands of workers in the US. Conversely, while Mexican workers also face job losses, they benefit from stronger and safer legal and social networks, reducing the immediate economic impact compared to their American counterparts. Despite the reciprocal reaction from Mexico, the short-sighted and impulsive actions by the US government could deeply harm American citizens more significantly.

Trade Disruption and Price Increases

The closure of the border would deal a significant blow to trade. Product Prices Would Skyrocket: The availability of staple goods such as fruits and vegetables would become scarce, leading to a sharp increase in prices. For instance, the price of avocados, one of Mexico's major exports, is already on the rise. Additionally, an overwhelming shortage of imported goods from Mexico will force businesses and consumers to pay premium prices or find alternative suppliers.

Long-Term Consequences and Policy Suggestions

Trade Imbalances and Mutual Benefits: The trade relationship between the US and Mexico has been a double-edged sword. While the US has relied on Mexico for imports, Mexico has benefitted economically from trade with the US. If Mexico were to refuse to contribute to border control efforts, a total closure of the border might be necessary, albeit with significant consequences for both parties. However, this would be a major step that should not be taken lightly. It is essential to explore diplomatic and regulatory solutions to address the underlying issues without causing long-lasting economic disruption.

Conclusion

In the end, closing the US-Mexico border would have far-reaching and often unintended consequences. Financial Hardships and Disrupted Lives: Both nations and their citizens would endure financial hardships, and lives would be disrupted. The focus should be on restoring order and addressing illegal immigration, drug trafficking, and human trafficking. Bringing these issues under control is crucial for the long-term stability and prosperity of both countries.