| Keyword | Description |
|---|---|
| Trade Deficit | When a country imports more than it exports to another country. |
| Interest Rate | The percentage charged by banks when lending money. |
| USMCA | A trade agreement between the U.S., Mexico, and Canada. |
Recently, U.S. President Donald Trump made some strong statements about trade with Mexico. He claimed that Mexico doesn’t provide anything the U.S. needs, except for “hot tamales” and “tomatoes.” Despite this claim, the trade between the U.S. and Mexico is quite significant. In July alone, Mexico exported over $60 billion worth of goods to the U.S. These goods include vehicles, machinery, medical devices and fresh food, including tomatoes.
Trump mentioned that the U.S. has a trade deficit with Mexico, meaning the U.S. buys more from Mexico than it sells to them. He suggested that stopping trade with countries like Mexico could help the U.S. financially. However, he stated he doesn’t plan to end trade with Mexico because they have a good relationship with Mexico’s President, Claudia Sheinbaum.
Trump’s comments were made after he urged the U.S. Federal Reserve to lower interest rates. He believes that high rates create an unfair disadvantage for the U.S. in global trade. While he suggested the U.S. could save money by not trading with some countries, his remarks don’t align with the reality of how the U.S. and Mexican economies work together. The two countries are highly connected through trade, which benefits both sides.
These discussions highlight the complexity of international trade and how policies can impact economies and relationships between countries.
Bridging words
These words sound similar in English and Spanish: Why not practice them now?
| English | Spanish |
|---|---|
| Tomato | Tomate |
| President | Presidente |
| Export | Exportar |
Time to discuss
- Why do countries trade with each other, and what are the benefits?
- What might happen if the U.S. stopped trading with a country like Mexico?
- How can high interest rates affect a country’s economy?
Let’s Write
Answer the following questions in one paragraph.
- Why do you think international trade is important for countries?
- What do you think about President Donald Trump’s comments on Mexico’s exports?
