EPISODE · Feb 3, 2025 · 18 MIN
Trade Wars Or Capacity Building Position? You decide~
from faceconomics podcast · host faceconomics
Trade/Tariff War against Mexico and Canada, let's review the situation... Having a historical reference should help....vis a vie NAFTA and during the first Trump administration, the unilateral trade agreement between Mexico, the US and Canada, equal footing and fair trade remember? With this said, neither Mexico nor Canada met their promise to increase their value for US trade. Now that Mr. Trump is back in office he has decided to challenge once again, perhaps this time around they will actually meet their obligations. But to put things in context the US has been engaged in many trade and commercial squabbles with virtually every country and that is because the US would like to see fair, equitable and transparent trade and commercial relationships with other countries. It might be a pipe dream but for the most part the US and specifically the Trump administration is now holding other countries accountable. Just to put things in lay mans terms, countries involved will look for substitutes and alternative target markets increasing their capacity. Canada may not have the core competencies and competitive advantages as well as Mexico, but it will give them the opportunity to up their game. The US is likely to recalculate and reassess direction on trade pivoting into Asia as previously considered or even increasing new target markets and trade partners outside of our traditional trading partners. The overall situation will strengthen global trade, market forces do not end on political policy, but the law of supply and demand which is now global in many ways. And the supply for good and services is significantly higher today more than ever.
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Trade Wars Or Capacity Building Position? You decide~
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