Can Mexico Retaliate Against US Trade Actions?

February 15, 2017

The debate over imposing a 20 percent border adjustment tax against Mexico has raised a number of questions, but one of the most imponderable is whether and how Mexico might retaliate should such a tax be adopted. The question is more than hypothetical. The record shows that Mexico has the means and the will to fight back. In fact, it has done so in the past. This posting presents some of the steps Mexico has taken and could take again.

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Topics: TRADE DEFICIT BORDER ADJUSTMENT TAX

Agreements: NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

Regions: MEXICO UNITED STATES NORTH AMERICA

Authors: KENT BOYDSTON

Publishing Institution: PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS

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