Southern Border Closure Would Have Consequences For U.S. Economy
Support for this podcast and the following message. Come from CFA society. Washington DC does your wealth manager measure up a CFA charter holder. Does they have the investment expertise to unlock opportunities? Other advisers might not see learn more at the right question dot org. President Trump says Mexico and Central American countries are not doing enough to stop the flow of migrants. So he has issued this threat that they don't stop with flows. Ing the border. They'll close we'll keep a close for a long time. I'm not playing games. This is not the first time. President Trump is sounded that warning the border in San Diego was shut down for a few hours last year. This time though, the president hasn't followed through on the threat stopping cross-border traffic with one of the nation's biggest trading partners could do serious damage to the US economy. NPR's Scott Horsely reports retailers in San Diego got a small taste of what a border shutdown might look like last November. When members of a migrant caravan charged the border. And us officials closed one border crossing and response while that shutdown lasted only a few hours it came on. What should have been one of the busiest shopping days the year and fall out for local merchants was severe. I usually usually between thirty five hundred forty eight hundred dollars Chirnside Lewis Leumi runs at Sureau stand in a large alad mall, just north of the border nine out of ten customers their walk or drive over from Mexico. When that traffic was cut off for less than a day. The hit to the local economy top five million dollars. So Louis says if the border were closed for a full week he'd be out of business gum along with the ghost town closing the entire US border with Mexico would also put the brakes on more than one and a half billion dollars in goods crossing back and forth every day, including fifty million pounds of produce from Mexico. The now feels one hundred warehouses in Gallup's, Arizona. One importer warned the US would run out of avocados in three weeks. But guacamole is the least. Of it lands. Young Meyer who has the fresh produce association of the Americas says fresh tomatoes peppers melons eggplant for the whole country would soon be in short supply, probably over half of what most consumers put in their shopping bag when it comes to fresh produce. They would find reduced quantities and higher prices. Young Maier says the administration's already planning to halt truck traffic through new gals on Sundays as customs officers who typically staff the border crossing. There are reassigned to deal with the influx of Central American migrants. If that shutdown extends to other days of the week young Meyer worries some people will be out of work. There's jobs that depend on link goods back and forth every day, and if that's not moving those people are laid off, and that means those people are not able to keep lights on their own homes and the progress in their own refrigerator. So it gets really, thanks. He really quick and those facts are not limited to the border region. Mexico's a critical supplier for companies throughout the US, especially in the highly integrated auto industry, we don't just trade with I. Other were making things together. Christian g check to the center for automotive research says Mexico supplies thirty seven percent of all imported car parts in the US and more than seventy percent of some critical components g check says because some of those parts are central to a cars assembly without them factories would soon grind to a halt. And that in turn would idle domestic parts makers. We'll see auto production in the US down pretty quickly some within hours, and certainly the whole industry within days. G? Check says the fallout from a complete border shutdown would be so fast and so sweeping it's hard to take the president's threat seriously. But White House counselor Kellyanne Conway insisted on Fox News Sunday. It's a real possibility. And certainly isn't a bluff you can take the president seriously companies throughout the US routinely make contingency plans for supply disruptions, but it's impossible to prepare for something like a complete border shutdown. If the worst does happen g check joke. She does have one consolation a stockpile of tequila the can last for a while. Scott Horsely NPR news, Washington.