Trump Wrong on Mexico’s VAT
President Donald Trump wrongly said that “nobody from this country knew” about Mexico’s value-added tax until after NAFTA was signed. A deputy U.S. trade representative at the time NAFTA was put in place said: “US policymakers, embassy officials and tax authorities were fully aware of Mexico’s VAT system.”
The president also claimed that the VAT tax put the U.S. “16 points behind, before we even started.” The former trade representative, as well as several economists and tax experts, told us the VAT is not a trade barrier, as it is charged on goods imported into Mexico as well as on products made and sold within Mexico.
Trump has repeatedly claimed as president, and as a candidate, that he views Mexico’s VAT tax as a “hidden tax” that puts U.S. exporters at a disadvantage.
