It looks like Donald Trump has figured out how to pay for his proposed Mexico border wall – by slapping a 20% tax on imports from the country.
White House spokesman Sean Spicer said the US president has discussed the idea with congressional leaders and wants to include the measure in a comprehensive tax reform package.
Spicer spoke to reporters on Air Force One as Trump flew back from a Republican retreat in Philadelphia.
He said that taxing imports from Mexico would generate 10 billion dollars (£7.9 billion) a year and “easily pay for the wall”.
Spicer said discussions are continuing with politicians to make sure the plan is “done right”.
But he said it “clearly provides funding” for the wall.
This comes after Trump claimed that he and Mexican President Enrique Pena Nieto agreed jointly to cancel their planned meeting over disagreements about who will pay for Trump’s promised southern border wall.
His statement is slightly different to what Trump was saying on Twitter earlier:
The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers…
— Donald J. Trump (@realDonaldTrump) January 26, 2017
of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.
— Donald J. Trump (@realDonaldTrump) January 26, 2017
During a Republican House and Senate retreat in Philadelphia, Trump said: “The president of Mexico and myself have agreed to cancel our planned meeting scheduled for next week.”He added: “Unless Mexico is going to treat the United States fairly, with respect, such a meeting would be fruitless, and I want to go a different route.“I have no choice.”Meanwhile, a debate has kicked off on Twitter as to who is actually paying for the wall:
Only a genius like #Trump can believe that #over-taxing Mexico imports may reduce migrations from Mexico!
— Riccardo Fiorito (@riccardofiorito) January 26, 2017
Considering this US-Mexico border wall fund proposal I am thinking two things
? Trump sees what the majority don't understand – Genius— SHEMKHANDE (@shemkhande) January 26, 2017
Trump is making Mexico pay for the wall after all.
This man is a genius.— Citizen (@Always_Wrlght) January 26, 2017
20% tax on Mexican imports means US citizens, not Mexico, pay for the border wall as the tax raises prices of those imports.#stopthewall
— Harold J Adams (@HaroldtheWriter) January 26, 2017
With a 20% import tax, any companies who rely on materials from Mexico and their consumers will be the ones ACTUALLY paying for the wall.
— Lori Davis ????? (@ChebaChick) January 26, 2017
Also, a tariff to pay for the wall means that American's will pay more for goods from Mexico, so we still pay for the wall.
— Tim Sullivan (@t_t_t_timmy) January 26, 2017