A 20 percent tax on products imported from Mexico will be paid by Americans, not Mexicans. Americans eat a lot of produce from Mexico, particularly at this time of year. That produce will cost 20 percent more. Americans buy a lot of products at Wal-Mart and elsewhere that will cost 20 percent more. Automobiles made in Mexico will cost Americans 20 percent more.
Perhaps Mexico will retaliate with an import tax of its own on American products. American companies will sell less product to Mexico and cut their workforce. It’s a lose/lose situation.
The same thing will happen if and when Donald Trump starts a trade war with China next, on an even bigger scale. If this is how the great businessman negotiates, God help us all.