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International Tax

The White House’s Mexican import tax

January 27, 2017
Jezael Melgoza - Chichén Itzá, Mexico - via Unsplash.

Today the White House casually floated the idea of paying for Trump’s impossible border wall by imposing a 20% tariff on Mexican imports.

The problem is basic economics: such a tax would be paid by U.S. businesses and consumers — not the Mexican government (as Trump promised).

In addition to not understanding how tariffs work, White House press secretary Sean Spicer also conflated the U.S.-Mexico trade deficit with the overall import levels.

Back to the drawing board.

More: The Dallas Morning News, “White House floats tax on Mexican imports that would force Americans to pay for wall,” Jan. 26, 2017.

  • Reply
    Will Donald Trump's Mexico import tax work?
    March 1, 2017 at 11:56 pm

    […] Leonard E. Burman of the Tax Policy Center has an interesting look the feasibility of the border-adjustable tax (BAT) recently proposed by GOP lawmakers (aka the Mexico border tax.) […]

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