Trump Border Wall Shutdown Will Affect Beer, Tequila, Avocado Supplies

President Donald Trump’s plan to close the Mexican border will entail a huge economic cost to the U.S and the worst affected sectors will be food, agriculture and auto industry.

Avocado supplies in the U.S will be badly hit as Mexico is responsible for 90 percent of its supply. According to estimates, the average daily supply of goods from Mexico is $1.7 billion filling store shelves and factory floors.

So, any abrupt sealing of the border will escalate the disruption of supplies to the U.S end users.

Trump has been repeating the threat of closing the Mexican border as a means to tackle the rising influx of asylum seekers and undocumented immigrants.

Trump to visit Mexico border

Meanwhile, the Trump news on the Mexican border is that the President may visit the Mexico border in California on Friday and is likely to announce the border closure.

Trump on Tuesday reiterated that he would close the border. He said more than trade, his major concern is security.

“ Security is more important to me than trade,” Trump said.

“Sure, it’s going to have a negative impact on the economy,” Trump said adding that sealing can also involve some specific parts of the border.

According to Mission Produce, the U.S. would run out of the toast-topper avocado in just three weeks if the border is shut.

The border closure will also choke supplies of strawberries, tomatoes and bell peppers coming from Mexico.

Beer supplies will be another pain point. Americans buy beer, wine and alcohol including tequila from Mexico and they spend about $4.6 billion a year, according to the Census Bureau.

United States supplies 69 percent of Mexico’s imports according to the US Department of Agriculture. A closed border would hurt U.S corn, soybean and dairy produce as shipment into Mexico will be blocked.

The American Farm Bureau data says $13.7 million worth agricultural products move across the border on a daily basis through the port of entry in Nogales, Arizona.

Mexican exports to the U. S also include cars, trucks, machinery, medical instruments, fossil fuels, and auto components.

Many economists warn that the entire US auto industry would come to a standstill from a border closure, as the U.S. auto plant and factories depend on parts made in Mexico.

Commercial trade may go on despite border closure

Meanwhile, senior White House officials are exploring ways to exempt commercial trade from Trump’s border shut down, according to a report by the Washington Post.

As Trump escalated threats, top aides got busy on how to minimize the economic impact of shutting the border. They are studying whether the movement of trains and trucks across the border could be allowed to manage the supply chains.

National Economic Council Director Larry Kudlow said; “We’re watching it and looking for ways to allow the freight passage. Some people call it truck roads. And there are ways you can do that, which would ameliorate the breakdown in supply chains.”