Tariffs on Mexico would cost Texas thousands of jobs, billions to economy: analysis

According to a recent economic analysis, if President Donald Trump threatened Twitter and the US imposed tariffs on Mexico, Texas could lose more than 100,000 jobs and cost the state economy billions of dollars.

If the president faced this threat, a 5{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} tariff could result in a loss of about $ 19 billion in gross production for the Texas economy as taxes rise across households and businesses, resulting in 117,335 jobs lost across the state. Perryman Group, a Texas economic consulting firm

Trump said on Twitter that he will impose a 5{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} tariff on all Mexican products coming to the United States that will gradually increase until the influx of immigrants and asylum seekers from the Mexican border stops. In response, Mexican officials began negotiations on immigration and trade with US officials this week in Washington.

HURTING HOUSTON?: Mexican tariffs could hurt Houston's economy

The annual 5{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} tariff enacted would result in a loss of $ 44.1 billion to the US economy, which would result in a total loss of about 406,000 jobs.

Texas will bear the "lion" of losses due to Mexico's close economic relations with Mexico. Mexico is the state's largest export market, accounting for 35{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of Texas exports in 2018.

According to the analysis, the manufacturing, financial and retail sectors will be hit hardest by tariffs.

According to the estimates of the Greater Houston Partnership, trade between Houston and Mexico averages $ 23.3 billion annually. According to local economists, the increase in tariffs on the Houston economy is particularly negative given the strong trade relationship between Mexico and Mexico. For consumers, if tariffs are imposed, prices for products such as cars, gasoline, drinks and agricultural products can rise.


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