01-13-2019, 11:29 AM
The funds aren't likely to be coming from tariff revenue. Most tariffs between the U.S. and Mexico were waived nearly 25 years ago through the original free-trade agreement. The new pact keeps most of those tariff reductions in place, which means not much money will be flowing into the Treasury.
The new trade deal does include rules that make it harder for auto companies to build vehicles or certain parts in Mexico and export them to the U.S. duty free. More auto companies, both American and foreign, might choose to pay the 2.5 percent tariff rather than complying with a new web of content requirements.
The result of more vehicles being charged tariffs could be more money in U.S. coffers, but those costs will likely be paid by importers in the U.S. and possibly U.S. consumers if dealers choose to pass on the added cost to the buyer.
White House strategic communications director Mercedes Schlapp acknowledged on CNN on Wednesday that U.S. taxpayers would ultimately pay for the wall.
Ref: https://www.politico.com/story/2019/01/1...ll-1073928
The new trade deal does include rules that make it harder for auto companies to build vehicles or certain parts in Mexico and export them to the U.S. duty free. More auto companies, both American and foreign, might choose to pay the 2.5 percent tariff rather than complying with a new web of content requirements.
The result of more vehicles being charged tariffs could be more money in U.S. coffers, but those costs will likely be paid by importers in the U.S. and possibly U.S. consumers if dealers choose to pass on the added cost to the buyer.
White House strategic communications director Mercedes Schlapp acknowledged on CNN on Wednesday that U.S. taxpayers would ultimately pay for the wall.
Ref: https://www.politico.com/story/2019/01/1...ll-1073928