People will he cheering but this is a lousy idea. Unfortunately, Congressional Republicans seem willing to go along with this madness.
This is a tariff, and contrary to what people think, this will harm lower and middle-income Americans far more than it will hurt Mexico.
Here is what Americans For Tax Reform says about import tariffs:
While, protectionist measures are often enacted for the purpose of shielding domestic industries from “unfair trade practices,” all indications are that they instead punish the multiple industries that rely on imports for their material inputs such as steel and raw materials. When input costs increase as a result of a rise in import tariffs, industries must cut costs elsewhere, the most likely being labor costs, meaning jobs.
BREAKING: White House spokesman: Trump calling for 20 percent tax on imports from Mexico to pay for southern border wall.
— The Associated Press (@AP) January 26, 2017
From the NY Times:
The White House on Thursday endorsed a 20 percent tax on all imports to the United States, an idea congressional Republicans have proposed as part of a broader overhaul of corporate taxation. Sean Spicer, the White House press secretary, told reporters that revenue from the tax would cover the cost of a wall on the United States-Mexico border.
Some of those revenues, however, are likely to come from American pockets.
President Trump had previously criticized the proposal as too complicated.
This is not going to work out well if it is implemented.