Trump Threatens to Close Entire Mexican Border: Instant Recession If Carried Out

Trump threatens to close the border in a Tweet complaining "‘Mexico has for many years made a fortune off of the US".

Once again Trump puts his trade ignorance on display whether you agree with him about the wall for other reasons.

Please consider Trump Threatens to Close Border If Mexico Doesn’t Stop Illegal Entries.

President Trump threatened Friday to close all or a portion of the U.S. southern border if Mexico didn’t immediately work to block all illegal immigrants from crossing. Writing on Twitter, the president also said Mexico made a large amount of money from the U.S. while doing nothing to stop the migrants.

“If Mexico doesn’t immediately stop ALL illegal immigration coming into the United States [through] our Southern Border, I will be CLOSING…the Border, or large sections of the Border, next week,” Mr. Trump wrote. “This would be so easy for Mexico to do, but they just take our money and ‘talk.’ Besides, we lose so much money with them, especially when you add in drug trafficking etc.), that the Border closing would be a good thing!

A senior Department of Homeland Security official said after the tweet that Mr. Trump was stating his intention to close some ports of entry if necessary. “It’s on the table,” the official said. “I will make a recommendation accordingly to the president.” The official said the U.S. had made additional proposals to Mexico. “We have walked through a whole variety of things they can do for enforcement.”

Idle Threat?

I don't know.

I do know that shutting the border would be damn foolish.

Many businesses get parts from Mexico. In addition, many workers cross the border legally every day to work in the US.

The border between El Paso, Texas, and Juarez, Mexico comes to mind.

El Paso - Juarez

Please consider Cross-border life in Juárez, El Paso

Almost 20,000 pedestrians a day join crossings by 35,000 cars and 2,500 cargo trucks between Juárez and El Paso. For 2017, the U.S. Department of Transportation calculated 41 million northbound non-commercial crossings from Juárez to El Paso, a tally just more than California's population.

While the Tijuana, Mexico-San Ysidro, Calif., region ranks as the world's largest land border in terms of crossing volume, Juárez/El Paso is the world's largest urban border region. The two cities' immediacy -- separated only several hundred yards by a wide, concrete river bed -- makes international border crossing a fundamental part of life for residents on both sides.

There's a strong, interdependent relationship between Mexico's powerhouse manufacturing city of Juárez and El Paso, which is strategic to U.S. security interests and a transportation hub for trains, trucks, buses and cars, midway between the west and east coasts.

"For every four low-paying jobs created in Juárez, there is one high-paying job created in El Paso," said Jon Barela, who leads a non-profit organization dedicated to economic prosperity in the region. Almost 300,000 people work in Juárez's manufacturing sector, composed of about 300 maquiladoras, factories run by American companies.

"In retail trade, 20 to 30 percent in the Borderplex region is done by Mexican nationals who come to eat, shop or play," Barela said. "That's a significant contribution to the economic health of our region."

Trade is a Two-Way Street

Trump views trade in which one side is a winner and the other a loser. Trade does not work that way. Both Mexico and the US benefit. It's debatable who benefits more, but I suspect the US.

Regardless, the notion that Mexico has made a fortune at the expense of the US is flat out preposterous.

One can support the wall while not supporting the notion of closing the border as Trump threatens to do. Perhaps Trump does not mean it the way he stated things, but who knows?

If parts and local traffic are disrupted there will be serious and immediate negative repercussions and I believe and instant recession.

Only fools want to "close the border".

Mike "Mish" Shedlock

Comments (59)
No. 1-22
abend237-04
abend237-04

Trump has tapped a rich vein of rage that a large portion of the middle class feels towards both national parties and the Mexican government. Neither party gives a damn about immigration law enforcement. Democrats want the votes and both parties want the cheap labor. Mexico just wants the money. Trump may just shut it down. The narcos, who have owned the Mexican government for many years now, may be making too much from human peddling at this point to allow it to stay closed for long. Interesting times.

Realist
Realist

I completely agree with you Mish. Closing the border for any significant period of time could indeed cause a severe economic slowdown. I doubt that Trump is actually stupid enough to do it. I suspect he is just using his favourite tactic - the politics of hate - to bolster support within his base. It’s classic. Focus attention on some perceived “enemy”. His supporters always eat it up.

The only difference between Trump and others who have used this strategy, is that he targets more than one enemy group; Mexicans, Canadians, Latins, Europeans, Asians, any non-whites, LGBT, Democrats, John McCain, etc etc

2banana
2banana

Mexico refuses to stop illegals. In fact, they openly encourage it.

The only way they will stop illegals is if they feel some pain.

Mish
Mish

Editor

Do you cut off your arm if your finger has pain?

shamrock
shamrock

Nothing orange man says can be taken seriously.