It's been a few days since the President declared that he is going to impose escalating tariffs on Mexican goods starting June 10, unless Mexico takes more action on migrants passing through Mexico to the US border. He just reiterated it again on his state visit to Great Britain. 

It's alarming and I've had many comments and questions about the effect on my small business if this policy was to go forward. 

First, let me say, it may never happen. He is desperate to move the discussion away from the Mueller Report and the threat of impeachment. He has threatened to do things in the past, only to reverse himself or say he never said it. He and his staff can't even say what it is they want Mexico to do exactly. 

Second, I read that the Mexican government trade officials are meeting with the White House on Wednesday of this week and perhaps, something will come of that meeting. 

But if it does happen, it will definitely have an effect on Zinnia Folk Arts. Everything I sell is imported from Mexico. I go to Mexico several times per year and purchase from artists, markets, shops and makers all over the country and then I pack and ship it to the US. So, it's imported to the US and up until now, all of the folk art has fallen under NAFTA. The goods I import usually do not have duties or tariffs applied (except for a few times when the customs broker has made mistakes) so the prices I'm able to charge my customers are reasonable. According to many people who travel to Mexico, my prices are actually lower than the items they purchase at the coastal resorts or Mexico City. 

The irony of the idea of imposing tariffs on Mexico for immigration related policies is that it would actually raise prices in the US on goods that American consumers want to buy--cars, avocados, beer, technology parts, and folk art. The President said again this morning in London, "...Mexico will pay." I don't think he understands international trade!  The consumers are in the United States and it's the importer that pays the tariffs and then passes on the increase in cost to the consumer. This is true for all size businesses including car manufacturers, grocery stores, big box stores and small businesses. And if consumers don't accept a price increase, retailers stop selling products and businesses go out of business.  A 5% increase in cost is not one I want to absorb but a 10-25% increase in tariffs, to get the goods to the US, would be life threatening for my little business. 

So, I will be watching to see what happens. But I wanted you to know that, yes, it will affect Zinnia Folk Arts and depending on what unfolds, there may be some drastic changes in my future! 

Just a few reasons it's really dumb.