What impact will the border wall have on US consumers?

What impact will the border wall have on US consumers?

(FOX19) - President Donald Trump is moving forward with plans to build a wall that borders Mexico and he insists Mexico will pay for it.

On Thursday, he announced he is considering a 20 percent tax on all imports from Mexico to pay for it.

If Trump decides to move forward with those plans experts say US consumers will have to dig a little deeper in their pockets to pay for everyday things.

The proposed tax plan comes in the wake of Mexico's President Enrique Pena Nieto canceling a planned meeting with President Trump.

Pena Nieto canceled the meeting after Trump signed an Executive Order Wednesday kicking of the process of building the wall and insisting Mexico would pay for it.

"The US will not pay for the wall and I made the clear to the Government of Mexico," said Trump.

A local economist said if Trump imposed a 20 percent tax on all imports from Mexico the US will feel the impact.

"A lot of agricultural products are imported from Mexico such as tomatoes avocados and things along that nature," said John Bowblis, an Assistant Economics Professor at Miami University.

He said the tax would transfer to higher prices for produce at the grocery store. Spirits like tequila, some beer and several other alcoholic drinks would also spike in price.

Professor Bowblis said it's not just the grocery store where consumers see higher bills.

"We'll also see many other types of manufactured goods, for example we do know there are a large number of cars made in Mexico so that going to increase the cost of productivity," he said.

He said if the tax on goods in Mexico is implemented, in the long term US companies who manufacture products there would likely move their plants elsewhere to cut costs.

"So initially consumers are going to have to see a lot of higher prices and then what's going to happen is overtime either consumers are going to have to adjust to those higher prices or companies like Honda and other companies that build in Mexico are going to have to start thinking about where they're going to have to start producing those goods," Bowblis said.

The White House Chief of Staff says that this isn't a final decision and that they are still considering several other options to pay for the wall bordering Mexico.

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