Adios Tequila, Cerveza, and Avocados: Trump To Impose 20 Percent Tax On All Imports From Mexico To Pay For The Wall
Earlier this week Donald Trump signed an executive order enabling construction of the Great Wall along the U.S. – Mexican border. A big point of contention is who is going to pay for this $20 billion project, with the White House insisting Mexico will pay to the point where it’s become a Trumpkin rallying cry. Clearly our neighbors to the south — the #3 trade partner of the United States — aren’t on the same page, with Mexican President Enrique Peña Nieto canceling a trip to Washington to meet with President Trump.
So, again, who is paying for this damn wall again? And how? Today on Air Force One, White House Press Secretary Sean Spicer announced the White House’s plan: Impose a 20% tax on all U.S. imports from Mexico.
So, economically speaking, the plan for “Mexico Will Pay!” is to cause a 20% price surge on items Americans regularly purchase directly from Mexico. That ranges anywhere from auto parts to clothes to produce.
Donald Trump really hates the North American Free Trade Agreement, a President Clinton-era trade agreement that’s made importing and exporting from Mexico quite easy. This has resulted in an economic boom of Mexican imports into the United States, including items that are a big part of the every day American’s lifestyle: Cervezas like Corona, Tecate, and Modello. Tequila, distilled from agave that *pretty much* only grows in Mexico. Avocados, which caused basic yuppie girls to freaaaaaaak out when they spiked in price last year under a shortage from U.S. growers.
Have you looked at the labels of origin on a lot of every day items you get at the grocery store? Betcha a lot of ’em say “grown in Mexico” thanks to NAFTA, causing prices to remain relatively low for us as consumers. Here’s what that means:
UPDATE: The White House is now changing its tune…. How convenient!
Twitter, of course, is losing it with the news of the 20% tariff and the possibility of a looming trade war over this damn wall: