Mexico and imports, an explainer

46645_article_fullThe president of Mexico, Enrique Peña Nieto, has canceled a visit to Washington after heated rhetoric from the American president over a border wall he wants to build, which he intends to pay for by placing a 20 percent tax on all Mexican imports.

So here’s where things get weird — according to CNN Money, 40 percent of the items we import from Mexico were made in the U.S.A. And nearly 5 million jobs depend on that trade relationship, according to The Atlantic. So, as Leftover makes clear in the comments, Mexico won’t pay for that wall. We will, in the form of increased prices on the goods made there, in the form of lost jobs, all of it.

As the CNN article says, trade works both ways. I knew that. You knew that. The American president…


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  1. We will be the ones paying for Trump’s Wall. Even if he succeeds in imposing that tariff, the American people will be the ones picking up the tab.
    More from CNN:

    That brings us to who pays for the wall. When the U.S. government applies a tariff on Mexican goods shipped into the U.S., Mexican companies don’t pay the tariff — American companies pay it. Companies usually pass the increased cost of goods down to consumers, hence the higher price tag.
    So yes, a 20% tariff would pay for the wall. But Mexico would not be paying for it. American consumers would ultimately pay the price. Literally.

    1. Absolutely. There is no way this won’t hit American pocketbooks directly. Lemme go back into the blog post. I thought I said that already but maybe in my fevered pitch I blew right by that.

        1. What’s shitty about this is, regardless of facts and information, Trump will say Mexico is paying for it, even if they aren’t. He makes up his own reality and knows many of his supporters will believe him. If consumer prices rise for all of us, he will blame it on something else or false media claims or whatever doesn’t point the finger at Donald Trump. We really need to stay on top of things (like you do) and educate, get people engaged and paying attention, and then realize after all that, some people will cling to their guy. I’m beginning to accept that and work around it. I’m not good at it yet. But damn, it’s frustrating having to deal a President who continually attempts to gaslight the public and then deal with those who stick to the guy over facts. Some people are not worth my time or effort, I’ve decided. At least a lot of us are on to his Narcissistic Personality Disorder manipulation. However, not nearly enough.

          1. If we shout REALLY LOUD, I believe people will understand that Americans are paying for this, over and over again. We have so many serious social issues, spending billions on this ignorant-ass wall is just beyond stupid.

            1. The Plan.

              We still get screwed.

              The effect [of “border adjustments”] on future taxpayers will be the same as if Trump borrowed the money for the wall outright, adding to the official tally of the national debt.

  2. It’s pretty clear that Trumpty and his minions don’t eat their fruits and vegetables (which explains why they’re so full of it). We should start putting those little “product of Mexico” stickers on postcards and mail them to the Orange House.

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