Donald Trump has figured out a way to pay for the Mexico border wall, however it’s still going to cost us.
On Thursday, the White House announced that Trump has endorsed a 20% tax on all imports from Mexico into the United States. According to Press Secretary Sean Spicer, the 20% tax on Mexican imports would raise $10 billion a year and would “easily pay for the wall” that is estimated to cost anywhere between $8 – $20 billion.
To put things into perspective, in 2015, the value of Mexican imported goods was $296 billion. Currently, Mexico and the United States exchange about $1.6 billion a day in cross-border trade. Mexico is the United States’ third largest trading partner.
Here’s the thing: Implementing a 20% tax on imported goods could likely result in the price of those goods being increased by 20%, maybe more. Unfortunately for us, that means we will be paying more money for the things we use daily. Consumers in the United States will end up paying for the wall, directly or indirectly.
Earlier today, Mexico’s President Enrique Pena Nieto cancelled his upcoming meeting with Trump at the White House.