It will not be 20% on top of current retail prices on goods from Mexico. The 20% will be roughly on about 1/2 of retail prices, or manufacturing cost plus transportation. So there will be 10% and less at retail and some of that will be absorbed at various points from the importer, through wholesale and finally at the retail level.
In some competitive situations, the consumer would see little or no price increase at retail.
Well, the American distribution point receiving the imports will be paying 20% more. That will be reflected in an increase in prices to the American consumer who loses in this. It represents a government-forced lowering in the standard of living by anyone affected by this forced price increase. Nobody talks about that.
I love Trump but not to capitulation. This is not a good move.