The tariff threat will not only affect currency exchange rates, according to Professor of Economics Dennis Hoffman, who is the director of the L. William Seidman Research Institute.

In this article published May 31, 2019, on Cronkite News:

The Mexican peso deteriorated about 2.5% percent today. That means on exports, it’ll cost 2.5% more before Mexico even retaliates with any reciprocal tariffs, which they are likely to do. Tariffs unequivocally are paid by the exporters and the importers of these products and they get passed on downstream to the consumer.

– Dennis Hoffman, director of the L. William Seidman Research Institute