When Donald Trump was running for president, he promised to bring back jobs to the US. It seems like he is taking actions already. Besides raising tariff on Mexican imports by 20%, Donald Trump is continuing to build a strong protectionism market by planning to raise tax in Chinese goods as he promised in his campaign, raising 45% tariff on Chinese imports. The tariff rate may even be higher on steels.
In 2014, 73% of the Mexican goods exported to the US, meanwhile only 13% of the US imports are from Mexico. Unless Mexico can find other destinations to export, Mexico does not have too much bargaining power against the US. However, unlike Mexico, China has much more bargaining power on the US over steel and other imports. China is the biggest producer and the US is the biggest importer of steel. Both sides are heavily relying each other.
China is the…
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