What a 20% tax on Mexican imports would mean for you

A passenger vehicle made in Mexico (KXAN Photo)
A passenger vehicle made in Mexico (KXAN Photo)

AUSTIN (KXAN) — Of the $252 billion in total imports to Texas last year, $84 billion came from Mexico, according to the U.S. Census Bureau.

Thursday, the White House announced plans to possibly implement a 20 percent tax on all Mexican imports to the United States. A 20 percent tax would impact the prices of goods “Made in Mexico,” a tag commonly seen throughout Texas stores and supermarkets.

U.S. imports of agricultural products from Mexico totaled $21 billion in 2015, the United States’ 2nd largest supplier of agricultural goods, according to the U.S. Trade Representative.

Around 86 percent of Mexico’s fresh produce goes to the United States, according to the International Trade Center, totaling $21 billion in agricultural products in 2015. Fresh vegetables ($4.8 billion), fresh fruit ($4.3 billion), wine and beer ($2.7 billion) and snack foods ($1.7 billion) led the rankings.

In 2015, $1.8 billion of tomatoes were the most imported produce from Mexico to the U.S. in 2015, followed by cucumbers, frozen vegetables, onions and cabbages. The Texas Association of Business warned that a 20 percent tax would hurt the Texas economy. “This proposal could mean a loss of jobs and a hit to state tax revenues,” the organization said.

Thirty percent of all imports to Texas were from Mexico in 2015, the chart below will give you an idea of what that includes:

Top 10 commodities imported to Texas from around the world 

 Rank   Description  2015 value
 1  Crude oil from petroleum  $34.1 billion
 2  Cell phones  $12.6 billion
 3  Telephone sets  $11.6 billion
 4  Petrol oil  $8.8 billion
 5  Insulated wiring for vehicles, ships, aircraft  $3.8 billion
 6 Passenger vehicles  $3.3 billion
 7  TV reception  $2.8 billion
 8  Processors and controllers, electronic integration  $2.6 billion
 9  Airplane A/C  $2.2 billion
10 Road tractors for semi-trailers $1.6 billion

 

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