Americans want access to the inexpensive goods that are produced in Mexico, says Manhattan Institute economist Diana Furchtgott-Roth. Bobbi Rebell reports.
After tweets back and forth about paying for the wall, and a canceled meeting, U.S. President Donald Trump got on the phone with Mexican President Enrique Pena Nieto. The two leaders recognize they have seen things very differently, the White House said, but agreed to try to work with each other. The big one - trade. Trump wants to impose a twenty percent tax on Mexican imports to pay for the construction of the wall. That would affect variety of products, from food, through computers, to cars, says Diana Furchtgott-Roth, economist at the Manhattan Institute. (SOUNDBITE) DIANA FURCHTGOTT-ROTH, ECONOMIST, MANHATTAN INSTITUTE, (English), SAYING: "President Trump is saying a lot of things about to trade, about putting tariffs on particular goods, but the people who voted for him in the Midwest, blue collar workers, they need access to these inexpensive goods that are produced in Mexico. They don't want to see the price of their goods going up. So, I think, that, if there were a trade war with Mexico, which I sincerely hope we will not have, I think, there would be a lot of complaints from people who see the prices of their products going up." Furchtgott-Roth also warns tariffs on Mexican goods and services would result in fewer jobs in the United States. Mexico is U.S.'s third largest goods trading partner, according to the Office of the Trade Representative. U.S. trade with Mexico totaled an estimated $583 billion in 2015.