Life at № 42
“Sean Spicer, White House press secretary for President Donald Trump, told reporters on Thursday that the administration is pushing for a 20% border tax on Mexican imports. “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, according to a White House pool report.”
This is the funniest one yet. And just goes to show the importance of understanding logic. Tariffs are ultimately paid for by the final consumer. A “border tax”, as Spicer put it (I imagine to make it sound like Mexicans handing over money at border crossings), translates to an increase in prices to the American public. That affects merchandise across the board. Consider that in the globalized world, your car, for example, might be put together in one country but it has parts from all over the world.