In a significant move, the United States has imposed tariffs on Mexican steel, a decision that experts believe will have profound long-term effects on both Mexico's economy and the global market.
Pablo Calderon Martinez, associate professor of politics and international relations at Northeastern University, warns that these tariffs could disrupt the flow of processed steel products crucial for construction projects in the U.S.
The imposed tariffs are expected to drive up steel prices domestically, leading to higher costs for construction and housing. As steel becomes more expensive, the ripple effects could be felt across various sectors, increasing the overall cost of living and doing business.
Moreover, the U.S. steel industry, already grappling with labor shortages, may find it challenging to meet the growing demand. This shortage could exacerbate the economic impact, potentially slowing down infrastructure development and economic growth.
These developments highlight the intricate connections in global trade and the far-reaching consequences that policy decisions can have on international markets and economies.
Reference(s):
Expert: Tariffs on Mexican steel will have long-term economic impact
cgtn.com
