Don't be fooled: Experts say a tariff would force Americans to pay for Trump's border wall
Pexels
The proposed tax, if enacted, would increase the cost of importing everything from vehicles to fresh vegetables.
That cost, according to experts, would undoubtedly be passed on to American consumers.
"The notion that Mexico is going to pay for this is wrong. This is going to be paid for by American consumers," David French, the senior vice president of the National Retail Federation, said of Trump's plan in a statement.
The NRF has said that prices for apparel and electronics from Mexico could skyrocket as much as 15% on day one if a border tax were implemented, Fortune reported.
Though President Trump has repeatedly said he would force Mexico to pay for the wall, Edward Alden, a trade expert at the Council on Foreign Relations, told CNN Money that the tariff would end up costing Americans.
"The notion that a 20% tariff is a way of forcing Mexico to pay for the wall, it's just a falsehood. It's a way of forcing American consumers to pay for the wall," Alden said.
Republican Senator Lindsey Graham spoke out against Trump's plan on Twitter, saying it would drive up the cost of Mexican-made goods like Corona and margaritas.
Restaurants that import fresh fruits and vegetables from Mexico could be hit hard by an import tax.
A spokesperson for Chipotle, which buys many of its avocados from Mexico, said the company was not prepared to speculate on how a border tax could impact its restaurants. In the past, the chain has said it could raise prices or even pull certain items from the menu if costs increase.
A 20% border tax is just one of the options the Trump administration is considering.
Another plan being pushed by House Republicans is a border adjustment tax - a more complex plan that would serve as part of a wider corporate tax revamp. The border adjustment tax has received similar criticism.
"That type of adjustment proposal in the House, it's a pretty dramatic change," William Dudley, the CEO of the Federal Reserve Bank of New York, said at an NRF-sponsored conference earlier in January. "I think that it will probably lead to a lot of changes in the value of the dollar, the prices of imported goods in the U.S. I'm not sure that that would all happen very smoothly and I also think there could be lots of unintended consequences."
Border security yes, tariffs no. Mexico is 3rd largest trading partner. Any tariff we can levy they can levy. Huge barrier to econ growth /1
- Lindsey Graham (@LindseyGrahamSC) January 26, 2017
Simply put, any policy proposal which drives up costs of Corona, tequila, or margaritas is a big-time bad idea. Mucho Sad. (2)
- Lindsey Graham (@LindseyGrahamSC) January 26, 2017
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- RBI announces auction sale of Govt. securities of ₹32,000 crore
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market