President Donald Trump called on fellow Republicans to help him enact "great and lasting change" during a party retreat Thursday but offered few details. Later his spokesman said the president will seek a 20 percent tax on Mexican imports to pay for a proposed border wall.
This tax will only increase the costs of goods imported from Mexico while resulting in inflation.
Corporations are answerable to their stockholders who expect a reasonable return on investment. Products can be made cheaper in Mexico so that is where they will move their manufacturing plants. Unless we want America to nationalize industries, companies are free to build wherever they choose.
I know free trade is the "boogey man" but it has built our economy and we should not engage in a trade war with Mexico. I still believe in capitalism and fair trade.
Protecting and defending our southern border is our responsibility not Mexico's!
Article from George Mason University Donald J. Boudreaux
Senior Fellow, F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics states:
"However well intended, restrictions on foreign trade harm the very people they aim to protect: American consumers and producers. Trade restrictions limit the choices of what Americans can buy; they also drive up the prices of everything from clothing and groceries to the materials manufacturers use to make everyday products. Moreover, it is lower-income Americans who generally bear a disproportionate share of these costs."