On Tuesday, President Donald Trump said he would move ahead with his plan to place tariffs on Mexican goods starting next week.
Trump previously promised to place a 5 percent tariff on all goods imported from Mexico. He said the tax would increase every month with a 25 percent limit until Mexico was able to stop the flow of Central American migrants seeking asylum in the U.S.
Sen. Ted Cruz of Texas called the Mexico proposal a $30 billion tax increase on Texans, according to the New York Times.
During his visit to London on Tuesday, Trump said the new taxes would likely start Monday and said Republicans would be “foolish” to try and stop him.
A new report released Monday by the Perryman Group, a Waco-based economic consulting firm, shows that Texas would lose an estimated $11.9 billion in gross product and more than 117,000 jobs as a result of the tariffs.
“Texas would bear the lion’s share of this loss given the extensive commerce that occurs between the state and Mexico,” said the report.
Sen. Cruz opposes the new tax.
“[T]here’s no reason for Texas farmers and ranchers and manufacturers and small businesses to pay the price of massive new taxes,” Cruz said.
The Texas Association of Business, the state’s powerful business lobby, “condemned” the tax proposal.
Breaking from the pack, Lt. Gov. Dan Patrick lent his support to Trump’s Texas tax.
“This is sending a loud and clear message to Mexico: You better help us out. … And so I understand why he [Trump] did it, and I think [Mexico will] come to the table, quite frankly, long before the tariffs last very long.”
