Nevada’s tab would be $36.8M if Trump hits Mexico with tariffs
WASHINGTON — American consumers and businesses would bear the burden if President Donald Trump slaps a tariff on Mexican goods and products — and all states, including Nevada, would see a financial impact, officials said Thursday.
Mexico sold $346.5 billion to U.S. businesses and consumers in 2018, according to the U.S. Chamber of Commerce. A 5 percent tariff on that amount would represent a $17 billion price tag spread across 50 states the District of Columbia and U.S. territories.
Nevada consumers and businesses would pay $36.8 million more over the course of a year for imported goods that include vegetables, fuels, alcohol and products built south of the U.S.-Mexico border and shipped to the Silver State.
“The Trump administration’s proposed tariffs are a tax on Nevada consumers and businesses, plain and simple,” said Gov. Steve Sisolak.
“Nevadans should not have to bear the financial burden of President Trump’s reckless immigration policy,” Sisolak said.
Trump is threatening to levy tariffs on the neighboring country to force the Mexican government to slow the flow of immigrants come to the United States.
Talks between the two countries continued on Thursday, with the president traveling in Europe and proposing to impose the tariffs on Monday.
Divisive plan
The president’s plan has been divisive in Congress, particularly among Republican senators from border and agricultural states that would be hard hit by the tariffs and retribution by Mexico.
Several GOP senators have warned of legislative action to stop the so-called “tax hike” that a 5 percent tariff on Mexican goods would represent to American consumers and businesses that would be forced to pay more for those products.
The U.S. Chamber of Commerce said that if the tariff is imposed Monday, as Trump has threatened, all 50 states would see an impact and pay more for products and food imported from Mexico.
“Imposing tariffs on goods from Mexico is exactly the wrong move,” said Neil Bradley, U.S. Chamber of Commerce executive vice president and chief policy officer.
“These tariffs will be paid by American families and businesses without doing a thing to solve the very real problems at the border,” Bradley said.
States hardest hit would be Texas, Michigan, California, Illinois and Ohio.
But all states would feel the impact of tariffs on produce, assembled goods and other products shipped to the United States.
Nevada purchased $736.7 million in Mexican goods in 2018.
Rising tariffs, rising costs
Trump said the tariff could eventually rise to 25 percent, depending on whether Mexico is successful in slowing immigration north from Latin American countries. A 25 percent tariff on Mexican goods would mean an increase of $184 million paid by Nevada consumers.
Mexico exports to Nevada include beverages, parts for arcade, table and parlor games, clothes, pumps, turbojets, gas turbines and tractors, as well as vegetables and sugar confections, according to Mexico’s Ministry of Economics and Trade office in Washington.
In addition, Nevada exports to Mexico base metals and ores, electrical parts and semiconductors, civilian aircraft and parts, according to the Mexican economic and trade office.
In Washington, Trump administration and Mexican officials continued a second day of negotiations to reach a deal. Both sides were hopeful and reported progress.
Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Committee, said he would block the tariffs if the Trump administration goes through with the emergency declaration to impose the financial punishment.
Neal said he would introduce a resolution of disapproval in the Democratic-controlled House.
Republican senators also warned the White House this week that few GOP lawmakers support the administration imposing the tariffs on Mexico and could support a resolution of disapproval, delivering an embarrassing blow to the White House.
Contact Gary Martin at gmartin@reviewjournal.com or 202-662-7390. Follow @garymartindc on Twitter.
