Mexican Tariffs Bad, Chinese Tariffs Good? Trump’s Trade War Lifts ‘factory North America'

Trade with Mexico is more important than ever, and more people realize it.That’s one takeaway from President Donald Trump suspending his plan for across-the-board tariffs on Mexico. Facing a backlash from business, GOP lawmakers and Trump's own advisers, the Trump administration found some common ground with Mexico and suspended the tariffs, for now.Trump’s latest threat against Mexico turned out to be as empty as earlier warnings about closing the border and ripping up the North American Free Trade Agreement. That’s good news because such moves would damage the economy, especially in Texas.There's another reason to not hobble Mexico now: It’s picking up some of the slack from the trade war with China — and that boosts prospects around here.In the first four months of 2019, U.S. trade with Mexico increased $7 billion while trade with China fell by almost $30 billion, according to data from the U.S. Census Bureau.A similar trend occurred in Texas, the largest trading state. Through April, Texas imports from China fell 20% while imports from Mexico increased 3.4%.“Tariffs with China are the principal reason that Mexico has become the United States’ No. 1 trading partner this year,” said Christopher Wilson, deputy director of the Mexico Institute at the Wilson Center in Washington.  Continue reading...