That means that “We” pay for the wall as Mexico will simply raise their prices. Of course a 20% increase would put their produce out of the market.
Exactly. Mexico will pay by loss in export sales, while US gains with increased domestic sales and the taxes they will bring.
It’s hard to determine the incidence of a tax. In the case of import duties, sales taxes, and the like; the cost of the tax is always split somehow between buyers and sellers. For instance, Mexico can’t “simply raise their prices” — they are in competition with U.S. producers, and those from other countries. Some Mexican producers will have to lower their prices (absorb some of the cost of the tax); others will drop out of the market. No one really knows the end result (although, you can be sure that government economists have already provided Trump with some estimates). My first-approximation guesstimate — the cost of the tax will fall 60:40 (60% paid by Mexican producers, 40% by American consumers).
No. it means that people that buy Mexican product pay for the wall.
I rather pay 20 percent more knowing that America will replace some of those goods that no longer will come into the USA from cheap mexican labor....and America will produce it here.
Heck, most things produced here instead of in Mexico at first will cost more but with the use of American made robotic and such the prices will go down and the USA will have better hi tech higher paying jobs building bots and repairing them.