That’s a big “IF”. IF Mexico folds and writes a check. Maybe they will and maybe they won’t. They certainly don’t have to. Unless and until that happens, American consumers will be writing the checks if they want to buy goods from Mexico. Demand will go down, but SOMEBODY has figured out that there will still be enough demand and sales to American consumers to pigeonhole $21 billion from the tariffs to build the wall.
I like Trump but he’s not being forthright about this and that kind of pisses me off.
I have to remind myself, however, that I don’t know how Trump could have or maybe even can now, can be forthright about this and still have popular support for building the wall. Either that or he miscalculated and would have enough support for the wall even if he laid out the gambit with Mexico and the American consumer.
I guess if he laid it all out on the table now before America, it’d look bad because he hadn’t done that during the campaign. Nothing and no one is perfect. In Trump we’ve got the best IMO.
“If”?
You can write the check one time, because gawd knows how long a tariff will go on, and on, and on.....
Let’s discuss Avocados. If sales of avocado dropped you would have a lot of pissed off Mexicans.
Gypsum? Gets worse.
Here is real kicker.
The U.S. accounts for some $300 billion of Mexico’s $1.2 Trillion GDP.
If we only tariff $100 Billion of those goods, that’s nearly 8% of their economy.
Let’s pretend Trump gets 8 years. That is likely a tariff increase for 6 years and No Bueno para negocios pero muy mal los Mexicanos.
That’s 6 years of tariffs on $100 billion at 20% or $120 billion.
The reality is there will be a minimum 30% reduction of imports, so we only get $90 billion but, they still get pissed off citizens and many who will be unemployed.
Wall is paid for, Border Patrol gets new toys and Christmas bonus.
Bad for them and with their current inflation, as well, price increases for intra-country fuel, they are already seeing pockets of protests
They just raised their interests rates, which no one in the world is doing, so that is making the cost of doing business even more expensive.
One payment costs less than the other...