The White house says that President Donald Trump plans on imposing a 20% tax on imports from countries which has a trade spillage with the US like Mexico to raise funds to construct a border wall along its southern border. This is a way to finance the border wall which Trump plans to construct between US and Mexico. This proposal is currently applicable only for Mexico confirmed the White House Press Secretary Sean Spicer who has been with Trump through his travels regarding the issue.
“When you look at the plan that’s taking shape now, using comprehensive tax reform as a means to tax imports from countries that we have a trade deficit from, like Mexico,” Spicer said.’
“If you tax that USD 50 billion at 20 percent of imports, which is, by the way, a practice that 160 other countries do -– right now, our country’s policy is to tax exports and let imports flow freely in, which is ridiculous. By doing it that way we can do USD 10 billion a year and easily pay for the wall just through that mechanism alone,” Spicer said.
“Right now we are focused on Mexico, but I think as we look comprehensively at our trade situation and countries that we have a deficit for, this is something the president has been talking about holistically,” he said backing US President’s views.
