lassoharp said:
So an import tax was proposed to pay for that wall.
75% of my daily diet are fresh fruits and vegetables and a big chunk of those come from Mexico
Great, we'll pay 10 bucks apiece for watermelons and avocados this summer and our grocery and clothes bills will double.
So, way back during the summer when he got the crowd to answer his chant "Who's gonna pay for that wall???" Had he given any serious thought as to how it was going to actually be done I wonder.
I think America is headed for a hard lesson on the matter of becoming this insular, non-dependent nation he rallies towards. We can't live in a bubble. We have to get along with the rest of the world. He's pissing off diplomats right and left.
I am not smart enough to predict the future but this looks like yet another negotiation that will evolve over time.
Since NAFTA trade in both directions has increased to hundreds of billions, this will not be decided flippantly.
As so often Trump's campaign characterizations were hyperbolic. There is a trade deficit of some $60B out of a roughly $200-300B trade level in both directions.
Right now media is focussed on the face saving exercises for both sides. Trump made campaign promises he does not want to publicly back down from, President Nieto risks losing face at home with his voters. If I had to guess, some fraction of the wall cost could be incorporated into trade adjustments. For just one example, we buy over $10B of Mexican oil, that they can deliver it to us way cheaper than to any other customer, so that commodity could support an incremental adder.
For those with short memory or who don't pay attention to trade, we had a trade dispute with Mexico and Canada about a year ago over country of origin labelling (COOL) for imported beef. They both proposed counter tariffs to offset the expected lost sales when customers could see where their meat was actually coming from (they have a worse record of "mad cow" incidents than domestic beef). Congress repealed the COOL legislation to protect midwestern farm state exporters who would be hurt by the counter tariffs.
So our trade partners can play hardball too. Mexico would benefit from a secure border too and has their hands full dealing with internal criminal drug operations and compromised police. They blame us for buying the drugs coming from there and they have a point. I can easily imagine a win-win deal involving multiple concerns, but not this week. Trump does not even have his full cabinet in place so it is a bit early for serious trade negotiations. (By EU contract I don't think May can make any other trade deals either until actually withdrawing from the EU, so this meeting with her is mostly window dressing).
JR
PS: One smart proposal about border security suggested years ago, was to engage the Mexican military to police their side of the border. For that to work, they would need to be compensated higher than the coyotes and drug trade pay them for looking the other way. Mexico actually issues short term transit permission at their southern border for the flow of central and south American immigrants just passing through. We just need to pay them more to control that human trade.