Trump proposes 20 percent tax on imports from Mexico to pay for southern border wall


Trump wants to pay for planned wall with border tax as part of tax reform package - White House.


**The Associated Press
Verified account
BREAKING: White House spokesman: Trump calling for 20 percent tax on imports from Mexico to pay for southern border wall.


Terrible, absolutely terrible.


Trump seems obsessed with returning to a 19th century tariff model. We abandoned that model for a number of very good reasons. Spoiler - one reason was the net negative impact on US consumers.


Most countries have duties on foreign goods, even the US. Mexico was a recent exception (NAFTA), and other recent trade agreements.


Americans are going to feel this.


Ohhh boy.


Goods coming in from Mexico will be higher unless the companies can find ways of compensating for the costs. But then, under Trump’s plans I can see all foreign goods increasing in cost so that American manufacturing can compete.

There are other ways to pay for the wall and have Mexico pay for it, if the tax falls through. For example, US subsidies to Mexico can be reduced by the amount of the wall over time.

We will have to see.


Yes, and the US has generally been in the camp of mutually reducing tariffs and competing. Now we are apparently trying to retreat behind tariff walls But that will not work with our economy, which is very dependent on international trade.

Tariffs are one of the many places where Trump clashes with conservative economic thought. It will be interesting to see if the conservatives go along with a return to the kind of government control of the economy that they have fought against for so many years.


Manufacturing and manufacturing jobs in the US has generally been annihilated too.

I think that was what this last election was all about, was it not?


Those jobs aren’t coming back


Manufacturing jobs are down, but manufacturing remains strong. The problem is not that we don’t make things, its that we make them with a lot fewer people than we used to.

The election was indeed in large part about getting people those jobs back, as well as punishing those perceived to have taken them away. But they were taken away by changes in the structure of the economy and changes in the means of production, not by the Mexicans. We can’t go back to our old levels of productivity, with the old levels of labor that went with that. We need to move forward, not try to claw our way back to the past.


Look at the number of parts made off shore even in the stuff assembled in the US, not to mention heavy manufacturing that has left the US.

I understand it isn’t pro-big-business, which is where the Republican Party has been the last century, but that wasn’t what Trump was all about. Trump’s campaign was all about helping the US working class. Trump said he was going to help them, and from all appearances he is trying.


This is going to hit the working class the hardest, who will bear the brunt of this tax.


I was/am a trump supporter. I was not blinded by outlandish claims or promises. But this first week has been more than I could have imagined. I’m proud of our president and he represents the very change he said was needed. He really is surpassing my expectations and it’s only been a week! He is justifying my vote by the day.

I’m proud of him. And us.


Yes, lots of stuff is made off shore. But we make more product in the US today than we ever have. That is simply factual. But we employ fewer people in doing so. Google “US Manufacturing Output” and you will find lots of data on this. Here is an example:

Trump needs to follow through on his promise to help the working class, but tariff wars will not get that done. No amount of tariffs will take those jobs away from automated machinery and put an American back on a rivet gun. Those jobs are gone.

I hope Trump does something to help regular working people. Lord knows neither major party is doing anything. But tariff wars are good for making headlines - not jobs.


I understand that there are certain things you could appreciate - but how is a 20% tariff something to cheer?


We shall see what the US working class thinks of Trump when they are paying so much more for goods and services including those by US companies due to decreased competition and CEOs continuing to be paid exorbitantly while the cost of production is passed onto consumers, cutting into whatever leftovers the workers are paid in wages.


Because it’s fair. And it helps deliver on a promise. Also, it’s far from a reality. We are witnessing posturing and rhetoric. It’s part of business deals, it’s what expertise he was elected for. It’s just that we publicly get to see the negotiations.
I’ve read art of the deal and this is a good move.
Business and politics are similar in the way of negotiations. Trump’s prowess will bear fruit. The world isn’t used to this. Good! It’s like running the option on a team that has never seen it.

Also it would boost some US areas. It may quell a California problem if say, the price of avocados goes up. Sure, chipotle patrons will suffer but who eats there anyway!?:smiley:


Prices will go up and it will be akin to Americans paying twice over for this “Wall” if the projected idea of a 20% import tax becomes policy.

Boy oh boy, we are witnessing the beginnings of a protectionist trade war in the making. I sure hope someone in America has heard Theresa’s May eulogy in favour of free markets and free trade before the GOP convention in Philadelphia.

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