Trump’s Import Tax on Mexico: Does it make sense?

President Trump (just getting used to saying that) has been talking about building a wall on the border to Mexico for a while now. It’s going to be really big (yuge), the best wall you have ever seen and according to Trump, he wants Mexico to pay for it. It’s estimated that the wall would cost between $8-14 billion, a humongous price for this amazing wall. President Enrique Pena Nieto says that Mexico paying for it is not going to happen. His response:

“I am dismayed by and condemn the decision made by the United States to continue building a wall that for many years, far from uniting us, has divided us. Mexico does not believe in walls. I have said it again and again: Mexico will not pay for any wall.”

It’s quite clear from the quote above that Mexico is not paying for the wall. That leaves us with the question: Who does? Well…under the suggestion from Trump’s administration that it would be a 20% import tax, the answer would be the United States of America. The potential wall can be seen below:


The prices of items that we value so much like avocados, tequila, corona’s etc. would go up to compensate for the tax and you as a consumer would be paying the price for it. This big promise that he was making across his whole campaign was that Mexico would be paying for this wall, not us consumers.

Now White House Press Secretary Sean Spicer has made it clear that it was simply one of the possibly ways to pay for the wall and there are other complicated ways that Mexico could be paying for it that us regular citizens might not be aware of. One thing that isn’t complicated: the US would be paying for the wall under this suggestion.

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