AP FACT CHECK: Trump’s theory about Mexico, trade, that wall
WASHINGTON — President Donald Trump has come up with a theory about how Mexico, by hook or by crook, really is paying for his border wall despite saying a thousand times no.
TRUMP: “I often stated, ‘One way or the other, Mexico is going to pay for the Wall.’ This has never changed. Our new deal with Mexico (and Canada), the USMCA, is so much better than the old, very costly & anti-USA NAFTA deal, that just by the money we save, MEXICO IS PAYING FOR THE WALL!” — tweet Thursday.
THE FACTS: This is a face-saving statement to mask the fact that Mexico flatly refused to pay for a U.S. wall, Trump gave up trying to make it do so and U.S. taxpayers must foot the bill if the wall is to be built.
In essence, Trump is arguing that new terms of trade with Mexico will increase economic growth in the U.S. and produce more tax revenue. That’s what everyone hopes trade agreements will do. As part of that, he hopes for a lower trade deficit with Mexico. Neither outcome is assured.