Trump promises tariffs of 25% to 75% on Mexican goods unless illegal immigration stops
WASHINGTON – Former President Donald Trump vowed to immediately impose 25% tariffs on all goods from Mexico as punishment if the country doesn't help curb the flow of immigration into the U.S., should he win on Election Day Tuesday.
"I'm going to inform her on day one or sooner that if they don't stop this onslaught of criminals and drugs coming into our country, I'm going to immediately impose a 25 percent tariff on everything they send into the United States of America," Trump said during his rally in Raleigh, N.C. on Monday, referring to Mexico's president.
Trump argued the proposal has an "100% chance of working" because if the 25% tariff doesn't work, he'll squeeze the country with a 50% and then 75% tariff.
If elected, Trump has proposed enacting a variety of tariffs , which act as taxes on imported goods, on all U.S. imports. He's suggested implementing a 60% tariff on Chinese goods, 10% tariffs on goods from other countries around the world and a 100% tariff on every car manufactured in Mexico.
Tariffs on Mexico could have a widespread impact, as Mexico is the No. 1 trading partner for the U.S.
The policies are designed to bolster U.S. manufacturing, but economists have said the proposals would raise prices on U.S. consumers and reduce economic growth by leading to retaliatory tariffs on U.S. goods. .
Trump has also proposed replacing federal income tax with tariffs. But the Peterson Institute of International Economics, a center-right think tank, said "It is literally impossible for tariffs to fully replace income taxes," because imported goods account for only $3.1 trillion per year while total U.S. incomes are $20 trillion. Any move towards replacing income taxes with tariffs would shift the tax burden from the rich, who pay higher income taxes, to lower-income families that spend a higher share of their income.
