Urging Congress and the president to reject the imposition of an import tax or border adjustment tax on trade with Mexico.
The resolution argues that imposing tariffs would likely lead to increased costs for American consumers, as the prices of imported goods rise, potentially causing a cost-of-living increase that would disproportionately affect the economically vulnerable. Furthermore, it emphasizes the potential disruptions to complex supply chains, especially for U.S. manufacturers that source materials from Mexico. This legislative stance reflects the concern of the Texas economy, as tariffs may lead to serious repercussions in trade reliant on Mexican exports.
HCR98 is a concurrent resolution urging Congress and the President of the United States to reject the proposed imposition of an import tax or border adjustment tax on trade with Mexico. The resolution highlights significant concerns raised by economists and business leaders who warn that such taxes would adversely affect both consumers and manufacturers within the U.S. The proposal is seen as detrimental to the economy, primarily due to its anticipated inflationary effects on domestic goods and a potential decline in purchasing power for lower-income Americans.
A central point of contention within the resolution is the fear of initiating a trade war between the U.S. and Mexico. The bill references the historical consequences of protectionist policies, citing examples like the Smoot-Hawley Tariff of 1930, which led to widespread economic distress. The resolution underscores the importance of maintaining healthy trade relations, particularly for Texas, as the state significantly benefits from its trade partnership with Mexico. With a substantial number of Texas jobs tied to this commerce, there is a prevalent concern about job losses arising from retaliatory measures or decreased U.S. exports.
The resolution is particularly focused on the economic implications for Texas, which is noted as having substantial trading ties with Mexico—over $176 billion reported in 2015. It outlines the reliance of many Texas businesses and jobs on cross-border trade, emphasizing the possible economic harm that could ensue should tariffs be enacted. The document is a call to action for Texas legislators to oppose protectionist measures that threaten the financial stability and job security of its constituents.