Gainesville Daily Register (Gainesville, Tex.), Vol. 127, No. 113, Ed. 1 Friday, February 3, 2017 Page: 2 of 10
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2 -FRIDAY, FEBRUARY 3, 2017
Mexican tariff could
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the wall.”
The value of the peso
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the Pentagon.”
A proposed tariff, he said,
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Sunrise today 7:23 a.m.
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would feel the impact,” said — even if it doesn’t fulfill iff will weaken the peso ten “Texas is directly in the
Orrenius, a labor economist Trump’s pledge to send the further, reducing Mexicans’ crosshairs,” he said.
put squeeze on Texas
By John Austin
CNHI State Reporter
Waco 9
56/41
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AccuWeather.com Gainesville Forecast
FIVE-DAY FORECAST TEXAS CITIES
TODAY HIGH: 51° Today
" Hi/Lo/W
49/39/c
66/56/c
45/29/pc 67/3 5/pc
60/45/c 64/57/c
63/43/c 61/56/pc
76/63/sh
65/56/c
55/38/c
61/49/c
72/44/pc 74/44/s
55/39/c 56/50/c
62/52/c 65/60/pc
64/46/c 62/59/c
64/58/c 73/61/c
74/45/pc 79/48/pc
65/54/c 77/62/c
52/3 5/pc 51/46/c
50/33/pc 67/38/pc
75/63/sh 80/65/c
56/42/pc 69/44/pc
54/41/c 69/52/sh
59/48/c 65/60/c
48/30/pc 46/42/c
65/52/c 70/62/sh
56/41/c 58/51/c
50/33/c 59/44/c
Tech University off a meeting because of dis-
economist Darren Hudson, agreement over the wall.
That could come into play if who leads the International
Mexico retaliates to a U.S. tar- Center for Agricultural peddle products in the U.S., tentionally [ increases] the
iff on its goods. Competitiveness, said money since they cost less. incentive for people to come to
“Consumers and producers can be found elsewhere But, Hudson notes, a tar- the U.S. to look for jobs.
even if it doesn’t fulfill iff will weaken the peso ten
AUSTIN — The Trump
administration backpedaled
when business and political
leaders protested the 20 per-
cent tariff on Mexican goods
it suggested to pay for a wall
along the U.S.-Mexico border.
But the White House did not
completely drop the idea of a
tariff — now saying it’s just
one of many options —and
that has some Texas business
and economic leaders worried.
In Austin, the Texas
Association of Business said a
tariff would cost jobs and drain
tax revenues for the state.
Economists say the effects
here may be more pronounced
than in other places.
“Mexico is our biggest
trading partner,” said Ray
Perryman, whose Perryman who studies regional eco- bill to Mexico. buying power. That’s not a
Group in Waco specializes in nomic growth and demo- The wall’s cost, he quipped, good outcome for U.S. compa-
economic and financial analy- graphic change. “It’s not just is “almost a rounding error at nies sending goods over the
sis. “It’ll have a much bigger tequila.” the Pentagon.” border.
impact on Texas than a typical The White House con- A proposed tariff, he said, A tariff could also affect the
state.”
5?
The White House con-
tends a tariff would do what amounts to “playing with a flow of immigrants, he said.
Pia Orrenius, a vice presi- President Donald Trump has mechanism that’s been func- While the U.S. does have “a
dent and senior economist at promised — make Mexico pay tioning fairly well,” which is border problem” with people
the Federal Reserve Bank of for a multi-billion-dollar wall trade between the U.S. and illegally crossing, he said,
Dallas, agreed the Lone Star that will seal the southern bor- Mexico, in hopes of “picking it’s largely from immigrants
will be pinched harder than der, blocking unlawful entry up some revenue to pay for leaving Central America - not
most, and not just because by immigrants. the wall.” Mexico.
consumers here will be forced Sen. Mitch McConnell, The value of the peso According to U.S. and
to pay more for a tariff on R-Ky, has said it will cost $12 dropped in the wake of last Mexican census figures, more
Mexican imports. billion to $15 billion to build week’s announcements that Mexicans left the U.S. than
Forty percent of Texas’ that wall across four states. Trump and Mexican President came here between 2009 and
exports go to Mexico, dwarfing The border is 1,954 miles long. Enrique Pena Nieto had called 2014, he said.
the trade it does with other Texas Tech University off a meeting because of dis- “Ultimately, we end up pay-
countries. economist Darren Hudson, agreement over the wall. ing and end up damaging the
A cheap peso helps Mexico Mexican economy. That unin-
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Armstrong, Mark J. Gainesville Daily Register (Gainesville, Tex.), Vol. 127, No. 113, Ed. 1 Friday, February 3, 2017, newspaper, February 3, 2017; Gainesville, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1323901/m1/2/: accessed June 29, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Cooke County Library.