Iowa uneasy over Trump's proposed imports tax on Mexico [View all]
Iowans' fears that President Donald Trump could incite an international trade war were heightened Thursday when the he floated a plan to pay for a proposed wall along the Mexican border with a 20 percent tax on imports.
Experts warn such a move could ripple through Iowa's economy, prompting Mexico and other countries hit with the tax to retaliate against local firms that export products internationally — a prospect that is particularly daunting for Iowa ag producers and manufacturers.
Next to Canada, Mexico is Iowa's second largest export market.
"There will be a tit-for-tat reaction," said Iowa State University Economist Peter Orazem. "Mexico is our second biggest customer, so I don’t think that’s good."
Read more: http://www.desmoinesregister.com/story/money/business/2017/01/26/iowa-uneasy-over-trumps-proposed-imports-tax-mexico/97082370/
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