'We're in Trouble': Robert Reich Explains Why Trump's Plan to Tax Mexico Imports Would Be a Disaster

On Thursday, President Donald Trump announced his plan to pay for the wall along the U.S.-Mexico border, after Mexican President Peña Nieto insisted they would not be paying for the wall. The Trump team is now considering a 20 percent tax on Mexican imports to pay for the wall.

Former United States Secretary of Labor Robert Reich joined MSNBC on Thursday to break down how such a plan could be disastrous for the economy. “A lot of American companies would be penalized,” he said. “American companies have — they send some of their components to Mexico and then they assemble them in Mexico, and then they send them back to the United States. So American companies are going to hate that.”

“American workers are also consumers,” he explained. “And American consumers are going to be paying much more for a lot of goods and even some services that come from Mexico.”

Reich added that it could start a trade war with other countries, in which case, “We’re in trouble.”


Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal
{{ post.roar_specific_data.api_data.analytics }}