Last week, President Donald Trump took the first steps to start the building of his much-hyped Mexican border wall. When built, this wall will allegedly make it infinitely more difficult for individuals from our neighboring country to cross our border through less-than-legal means.
The cost of the wall is astronomically high — around $20 billion or more. Trump plans on paying for the wall’s construction and maintenance by imposing a 20% tax on all Mexican imports. This would undoubtedly raise money for the wall and then some, while incentivizing companies to conduct more business and buy more products stateside.
There’s just a few problems. First, imposing such a tax would have a tremendously negative impact on Mexico’s economy, as their companies make billions each year on Americans importing their goods. Second, it would make it more costly for American companies to conduct business in and with Mexico, as they would have to pay 20% more just to import goods.
Worst of all, however, is the impact a 20% tax would have on the American public. Since American businesses import countless goods from Mexico, and those goods would be marked up by 20%, that 20% increase would be passed on to the consumer.
But what products would you have to pay more for? CBS News has the answer…and you’re not going to like it.
If you’re a fan of avocados, tomatoes, or pretty much any vegetable, you can expect to pay more if the 20% tax is put into effect. Several car brands product parts or entire vehicles in Mexico, and paying 20% more for those would certainly cause some consumers sticker shock.
Since the announcement of the 20% tax idea, the Trump administration quietly walked back the proposal a bit and stopped discussing ideas for funding the wall’s construction. Until they introduce a different way to pay for the theoretically impossible wall, however, you should be prepared to foot the bill in the near future.