Thursday, January 26, 2017

Trump Proposed 20% Import Tax on Mexican Junk Products

RT | Jan 26, 2017

Editor's note: Good news for small business, and a good example is "Rooms to go", a big box store that peddles cheap wood-derived products and has put all furniture makers out of business by moving into your towns. It would be nice to see them lose their competitive advantage.

U.S. President Donald Trump © Jonathan Ernst / Reuters
After signing an executive order to build a wall on the US southern border, President Donald Trump has said that Mexico will pay for the costs of the construction "one way or another." The White House has hinted that would be with an import tax.

In the past, Trump has said that the initial funds for the wall would come from US taxpayers, and later be reimbursed by Mexico; however, Mexican President Enrique Pena Nieto says that Mexico will not pay for any wall. [...]

“The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost,” the president tweeted. “If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.”

Mexico will pay for the wall "one way or another," White House Press Secretary Sean Spicer said during the Thursday briefing. He announced plans to impose a 20 percent border tax on Mexican imports into the US.
The 20 percent tax on annual Mexican imports would raise $10 billion a year to pay for the border wall, which is estimated to cost between $8 billion and $20 billion, Spicer said.

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