Mexico can benefit from tariffs

[Traveler]

There may be a hidden benefit for the Mexican government backing a position that would result in tariffs.  Something well known in Mexico and not so much here in the USA is the powerful influence organized crime (drug cartels) have over border issues.  An increasing problem in Mexico is black market trading.  For example, petroleum (both raw and refined) is stolen in Mexico and then sold as regular product in the USA.  If the Trump administration applies a tariff on all good being shipped from Mexico it would be like setting up a lighthouse beacon for avoiding hidden rocks for black market items entering the USA.  This will be a very important development to watch - both because it will expose corruption in Mexico but I believe it will also expose elected and otherwise officials in the USA that work with organized crime operating in Mexico.

I am not a fan of Trump - but this may be one of the most notable and revealing moves by our government against organized crime and those in league with them - in our lifetime.

 

The Traveler

[NeuroTypical]

Not sure I understand.

Tariff for legal stuff = tariff paid
Tariff for black market stuff = ?  What happens here that might be good?

[Guest Godless]

7 minutes ago, NeuroTypical said:

Not sure I understand.

Tariff for legal stuff = tariff paid
Tariff for black market stuff = ?  What happens here that might be good?

I could be wrong, but I believe he's suggesting that a tarriffed product is easier to regulate than an untarriffed product, thus making black market operations more difficult because there are more eyes on the stuff coming over the border. 

[Guest Mores]

8 minutes ago, NeuroTypical said:

Not sure I understand.

Tariff for legal stuff = tariff paid
Tariff for black market stuff = ?  What happens here that might be good?

Yeah, I was kind of wondering where he was going.

The normal way of thinking is that if tariffs go up, then smuggling increases because people don't want to pay the tariffs.  So, organized crime would LIKE to see tariffs go up.

But since the Mexican government has agreed to up their emmigration restriction policy, then we're getting what we want and organized crime does not.  So, I'm not sure where Traveler was going with that.

[anatess2]

58 minutes ago, Mores said:

Yeah, I was kind of wondering where he was going.

The normal way of thinking is that if tariffs go up, then smuggling increases because people don't want to pay the tariffs.  So, organized crime would LIKE to see tariffs go up.

But since the Mexican government has agreed to up their emmigration restriction policy, then we're getting what we want and organized crime does not.  So, I'm not sure where Traveler was going with that.

This is what I understood of what he's saying:

1.)  Tariffs go up, black market benefits.

2.)  Mexican government personnel as well as US government personnel continuing to support open borders or deliberately causing chaos in negotiations in a tariff scenario may be the people who are paid by organized crime outfits.  So, the target can be narrowed down in draining the deep state swamp.