“The White House on Thursday floated the idea of imposing a 20 percent tax on goods from Mexico to pay for a wall at the southern U.S. border,” according to Reuters.
“Countries like Mexico would not pay such taxes directly. Companies would face the tax if they import products made there into the United States, potentially raising prices for American consumers.”
Mexican Foreign Minister Luis Videgaray: “If you tax exports from Mexico into the United States, you’re going to make things ranging from avocados to appliances to flat-screen tvs… more expensive.”
“The idea is unpopular with retailers and businesses that sell imported goods in the United States. It also has met opposition from some lawmakers worried about the impact on U.S. consumers.”
UPDATE: U.S. supermarket shares dip after Trump threatens Mexico trade (Source: Reuters)