President Trump's Wall Over Mexico Creates Border Tax Threatens Price Hike On Foods And Drinks
At the entrance of Trump administration, it has already gained massive protests and defiance, a divided nation over differences in political beliefs. Now, with the cancellation of Mexico's President Enrique Pena Nieto first visit to meet the new U.S president, the wall that was once invisible, can be clearly seen now. This wall for Mexico's borderline will cost an additional 'burden' tax to some products that Mexico regularly imports to the U.S.
Based on reports from Bloomberg, the products highly affected by the 20% tax on imports includes fresh vegetables, fruits and beer. Fresh vegetables like tomatoes, onions and chili peppers are frequently imported from Mexico as well as fresh fruits like raspberries, strawberries and avocados, even wines, beers and snack products.
Considering that these are all in-demand products in U.S, the country gets the highest importations in Mexico, Canada only in the second place. In 2015, Mexico exported almost $21 billion worth of foods and drinks in U.S alone, while U.S exports $17.7 billion to Mexico in 2015 despite news of trade deficit.
U.S. had been partners of trade by Mexico over the past years but based on reports from The Boston Globe, it was only in 2015 that the agricultural trade-deficit has happened between the two countries. For one, Mexico is the biggest consumer of U.S. corn, soybean meal, rice and dairy products in 2015 since oilseed and grains become very expensive. With the recent decisions of both leaders of each country, agricultural goods will suffer as well as the common buyer.
With the social media hype, alarming netizens of a possible price hike for fruits such as avocado, raspberries and strawberries and other products, memes were made and others tried to joke around a serious problem. Everybody is now worried on how to budget their groceries just to pay for the cost of building the 'politically intriguing' wall.
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