>>6687622 pb
Marketfag or any other anon please explain how a tariff on Mexican imports will result in Mexicans being able to buy more US goods. Seems to me the tariff will push the peso to 20 pesos to a dollar or higher, resulting in it becoming more difficult for peso holders to buy American goods. On the other hand, dollar holders will be able to buy more stuff from Mexico since dollars will convert to more pesos. What am I getting wrong?
What's been happening is everytime there is news of Trump imposing more tariff, the currency of the target country gets weaker, making goods from that country cheaper for dollar holders. This partially offsets the tariff and maintains the status quo for American consumers buying from China / Mexico, but making it harder for China / Mexico to buy US goods. This seems like it will widen the trade gap until the currencies stabilize… But maybe this is too simplistic an understanding…