Not so clear what you mean with “not working” here. Tariffs are costly to both countries. To Mexico because Mexican products become more costly in the US, which reduces demand. To Americans because consumer prices go up. So it’s a lose-lose. Now if Mexico enacts counter tariffs, you get to a lose-lose-lose-lose.
Now who is the biggest loser crucially depends on the size of the countries and how important trade is. For Mexico trade with the US is much more important than vice versa. These tariffs would be devastating to Mexico. So if that’s what you mean with “working” yeah sure tariffs work.
What’s important to realise is that these tariffs were enacted without clear demands. So without a clear intention it is impossible to define whether it works. Another point is that such generic barriers to trade are usually reserved for rogue states like Venezuela. Enacting them against arguably your closest friends is a huge escalation of the instrument, and in the long run leaves you without friends.
Not so clear what you mean with “not working” here. Tariffs are costly to both countries. To Mexico because Mexican products become more costly in the US, which reduces demand. To Americans because consumer prices go up. So it’s a lose-lose. Now if Mexico enacts counter tariffs, you get to a lose-lose-lose-lose.
Now who is the biggest loser crucially depends on the size of the countries and how important trade is. For Mexico trade with the US is much more important than vice versa. These tariffs would be devastating to Mexico. So if that’s what you mean with “working” yeah sure tariffs work.
What’s important to realise is that these tariffs were enacted without clear demands. So without a clear intention it is impossible to define whether it works. Another point is that such generic barriers to trade are usually reserved for rogue states like Venezuela. Enacting them against arguably your closest friends is a huge escalation of the instrument, and in the long run leaves you without friends.