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This is How Mexico Pays For The Border Wall

Recently I saw some news clips where Tomi Lahren was discussing the Southern U.S. Border Wall with a Democrat lady. The Democrat lady was skeptical about how we were going to get Mexico to pay for the Wall. I decided to look into that and run some numbers.

Of course the numbers I ran were idealistic. Also, in a non-perfect world we would be using products such as steel for various other things in manufacturing. But, the United States gets a lot of their steel from countries such as Canada (16%), Brazil (13%), and South Korea (10%). We import about (9%) from Mexico as of 2017.

As of March 2018 the U.S. purchased about $2.634 billion worth of steel from Mexico and Mexico purchased about $4.45 billion worth of steel from the United States. Back in October 2017 President Trump wanted to spend about $5 billion on the Southern U.S. Border Wall. I realize that we would most likely use the steel we get from Mexico for other portions of manufacturing in our Industry. However, we do get 58% of our steel from other countries and that’s not counting the other 33%. For the first two years what if we were to use the $3 billion worth of steel we get from Mexico to build the Wall? That is the 2.634 you will see in a second. A lot of awesome ideas are drawn up on napkins but, I wrote mine by hand and here is what I came up with below.

After the second year the Wall would be built in areas that needed that and we would have about $4 billion carried over to the third year. This would amount to $5.4 billion and that would mean the Wall would be paid for in full after three years of trade. Then as we continue to trade with Mexico we would use the steel for other portions of our Industry and the revenue we would have left would continue to grow. Then that would be used for other things. The 9.08 is in billions of dollars.

I know this scenario is not perfect. However, this does give a good indication of what President Trump meant when he said Mexico will eventually have paid for the Wall. Also, a lot of things have happened since 2017, within a year things change, and sometimes products and revenue are put to use elsewhere. This example is not all inclusive but provides an easy to understand model of the basics.

by Jamin Chavez


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