Trump proposes 20 percent import tax on Mexico to pay for the wall


President Donald Trump plans to pay for the border wall with a 20 percent tax on imports from Mexico, White House Press Secretary Sean Spicer said Thursday. Raising import taxes on Mexican goods would likely cause Mexican companies to pass the costs on to U.S. retailers and businesses by making them pay more for products, thus resulting in higher prices for U.S. consumers.
"By doing [the import tax] we can do $10 billion a year and easily pay for the wall just through that mechanism alone. That's really going to provide the funding," Spicer said. When asked about the costs getting passed along to Americans, Spicer said, "I'm not going to get into it."
Mexico was the United States' third largest supplier of goods imports in 2015, with the U.S. importing $295 billion worth of goods across the southern border. Mexico is additionally the second largest supplier of agricultural imports to the U.S., including foods like avocados as well as beer and wine. Prices on goods from Mexico, including cars, electrical machinery, mineral fuels, and medical instruments, can be expected to go up if such a tax is implemented.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Trump has suggested raising import taxes before as a means of incentivizing U.S. companies to manufacture goods domestically.
Earlier Thursday, Mexican President Enrique Peña Nieto announced that he had canceled his scheduled meeting with President Trump. Peña Nieto was set to meet with Trump next Tuesday, but after Trump signed an executive order Wednesday to direct federal funds toward building a wall along the U.S.-Mexico border — and reiterated his pledge to have Mexico reimburse the costs of construction — Peña Nieto said his office had informed the White House he would no longer attend the meeting. Jeva Lange
Update 4:42 p.m. ET: Spicer told NBC News' Peter Alexander that the idea of a 20 percent import tax on Mexican goods was simply an "example of options [of] how to pay for [the] wall" and not a concrete policy proposal. The White House has not yet offered a concrete, unqualified plan for how it will fund the construction.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
'Arise, Sir Goldenballs': David Beckham plays the long game in quest for knighthood
Talking Point Former footballer set to be knighted in King's birthday honours after years of snubs
-
Quiz of The Week: 31 May – 6 June
Have you been paying attention to The Week's news?
-
The Week Unwrapped: How did Japan become a space superpower?
Podcast Plus, why on earth are Labubu dolls so popular? Will buy-now-pay-later cause a new financial crisis?
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores