Executive Briefings

What It Takes to Get a Corona From Mexico to a U.S. Heartland Bar

Ordering a bottle of Corona beer at a bar in the United States is a simple proposition. But getting it there from its brewery in Mexico involves a complex, cross-border supply network that will likely get more complicated if U.S. president Donald Trump follows through on vows to renegotiate the North American Free Trade Agreement (NAFTA) or tax imports.

Trump has not outlined specific plans for revising NAFTA, but he has made repeated calls for a levy to discourage companies from moving jobs outside the United States. Last month, the White House floated a plan to impose a 20 percent tax on imports. Republican leaders in the U.S. House of Representatives have included a tax on imports in their blueprint for overhauling corporate taxes.

The ideas have met opposition in Congress, even inside Trump's own party. U.S. Senator Lindsey Graham, a republican from South Carolina, took to Twitter, saying "Simply put, any policy proposal which drives up costs of Corona, tequila, or margaritas is a big-time bad idea. Mucho Sad."

Trump's rhetoric has also heightened uncertainty over the billions in supply chain and infrastructure investment that a diverse array of companies from automakers and railroads to appliance makers and food producers have made on both side of the U.S.-Mexico border during the past two decades.

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Trump has not outlined specific plans for revising NAFTA, but he has made repeated calls for a levy to discourage companies from moving jobs outside the United States. Last month, the White House floated a plan to impose a 20 percent tax on imports. Republican leaders in the U.S. House of Representatives have included a tax on imports in their blueprint for overhauling corporate taxes.

The ideas have met opposition in Congress, even inside Trump's own party. U.S. Senator Lindsey Graham, a republican from South Carolina, took to Twitter, saying "Simply put, any policy proposal which drives up costs of Corona, tequila, or margaritas is a big-time bad idea. Mucho Sad."

Trump's rhetoric has also heightened uncertainty over the billions in supply chain and infrastructure investment that a diverse array of companies from automakers and railroads to appliance makers and food producers have made on both side of the U.S.-Mexico border during the past two decades.

Read Full Article