President Donald Trump has promised for months that he’ll make Mexico pay for every inch of a border wall with the United States.
And Democrats have called the idea everything from crazy to a “pipe dream.”
Of course, Trump understands something that Congressional Democrats don’t.
He doesn’t need them in order to make Mexico cough up billions for the wall.
In fact, Trump is on the verge of making it happen.
Is Mexico going to hand Trump an oversized game-show check in the Rose Garden?
Or will Mexican President Enrique Peña Nieto send armored trucks full of pesos across the border?
Of course not. Those notions are crazy and wouldn’t happen anywhere in the world.
But Trump has found a better way to make Mexico pay – and it will help create thousands of jobs across America.
In a recent interview, Trump said he would demand concessions in the North American Free Trade Agreement (NAFTA) as compensation for the wall.
“They can pay for it indirectly through NAFTA,” Trump said. “We make a good deal on NAFTA, and… I’m going to take a small percentage of that money and it’s going toward the wall. Guess what? Mexico’s paying.”
And that’s not just smart… it’s brilliant.
Right now, under NAFTA, America has a $55 billion trade deficit with Mexico.
The cost for the border wall? A projected $18 billion.
So Trump only needs to renegotiate a one-third reduction in the trade deficit to effectively force Mexico to pay for the wall.
Correcting a trade deficit is actually much smarter than just receiving straight cash from Mexico. That money would go into the U.S. Treasury, where you can bet Uncle Sam would find a way to squander it before the wall was built.
By reducing a trade deficit, Trump would create thousands of jobs in America and help further spur the economy.
And here’s the best part – Trump has plenty of authority to do it. In fact, he’s backed both Mexico and Congress into a corner.
Trump and his administration have wide latitude to negotiate trade deals. Even elements that require Congressional approval are practically guaranteed to pass.
How many members of Congress are going to publicly vote against a deal that creates American jobs? Constituents would have their heads.
Talks on renegotiating NAFTA have already begun. And Trump is aiming to show that he’s still Master of the Deal.
And when he rebalances trade with Mexico, Trump will end up keeping two vital campaign promises.
America will have a border wall.
And Mexico is going to pay for it.