The Taxpayer will Pay for the Wall

Jan 26, 2017 (San Diego) Sean Spicer floated earlier today that if Mexico does not pay for the wall, which they have said repeatedly they will not. It is about national sovereignty and dignity, then they will by levying 20 percent import taxes of Mexican products. Not only is the White House signaling that there will be no negotiations over the North American Free Trade Agreement. Earlier in the week, Mexico signaled the same. But this will have real effects on the day to day economy of Americans.

Senator Linsey Graham used his twitter to signal, at least the position of the business wing of the Republican party.

Now, this is the kind of policy speech on Twitter that indicates some in Congress are not going to go along. Yet, what happened today was the beginning of a trade war, and Graham is late to the party. There is a collective call on Mexican social media for a boycott of US companies. First on the target list: Ford Motor Company. Later reported in Dinero magazine.

The companies in question are Coconal, which is the company building the new Mexico City Airport, as well as the XCaret Group in the state of Quintana Roo, that specializes in tourism.

The call also includes Walmart and Sams Club, as well as Starbucks, and other companies. We are embedding the Twitt that is circulating in Twitter.

This says, “don’t buy American. We are asking you to not buy these products. We are asking that you avoid them and substitute them.”

The effects of this could lead to a recession on both sides of the border. Trade wars are never healthy. Also, a 20 percent tax at the border violated the World Trade Organization rules. They have a table of border taxes and are meant to encourage free trade.

There is more. Mexico will have to decide very fast who to trade with. The choice is to turn inwards, and its economy as it was once. Or to trade outwards and avoid the United States. Mexico is the third largest trading partner for the United States. It also has access to the Mexican market in ways that it has not had before. Moreover, this will lead to an unnecessary conflict, all because the country has refused to pay for a wall.

One detail is important. During his speech, President Donald Trump said that Mexico had to respect the United States. This was part of American dignity. He followed the same words President Pena Nieto, who is hardly popular in Mexico, has used for months. Pena Nieto’s popularity is currently at about 12 percent.

The State of Campeche is also joining the boycott. after Ford announced that they will upgrade the plant in Michigan instead of building it in the state.

Updated to reflect more data

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  1. The Wall and Mexican Reaction – Reporting San Diego

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