Trumps New Plan To Build The Wall, TAX MEXICO 20%!

So it's going around that Trump's new plan to pay for the wall is to tax Mexico 20% at the border. Now we're going to take a look into this and really dissect it. Before we do however I am going to say right now he has only claimed this is a option.



Looking at trade between Mexico you can see that we have pretty equal trading between each other with Mexico being are 3rd largest trader. Mexico imports electronics, automobiles and parts, and most importantly agriculture, and of course you can't forget Corona, and Margaritas.



Now by imposing a 20% tax at the border, everyone will have to pay that difference in America which means that automotive parts, electronics, and food will be 20% higher for us. So many of are goods are going to cost more.



Now this may actually help in certain aspects by keeping production here in the United States. However the cost to ship to Mexico which we ship almost the same amount to Mexico as they ship to us will also cost us more.



This in fact will destroy jobs, now whether they will balance out won't be known unless it is done. During the time of it's inception however it will decrease jobs, and the cost of production of many jobs.



Over time this may make domestic trade more accessible, but unless done right it will also slow are advance economically. One of the reasons trading with Mexico is advantageous is because of difference in are currencies making it easier to produce higher end products in Mexico and ship them cheaper into USA than produce them ourselves.



This helps us build new businesses that are cutting edge at a fraction of a cost and allow us to advance in many fields, and unless this is taken into account we will probably digress economically, and the power of our dollar will also drop.



So can it help both countries if done right?

Yes, it's very possible.



Can it hurt both of our economies enormously?

Yes, absolutely.