like $100 billion down because we had stupid politicians doing stupid things. think of $100 billion. by the way, we re really i ve always said $71 billion. but mentio mexico, we re $130 m. mexico charges a 16% vat tax. nobody ever talks about that. they do it. that deal was bad the day they made it because they had a tax and we didn t. so they have a 16% vat tax. nobody ever talks about it. but i talk about it. we re either going to renegotiate nafta, and i said we won t put the tariffs on mexico and canada and canada s brutal. canada s really tough. we have a big deficit with canada too. they send in timber, they send in steel, they send in a lot of things but our farmers in wisconsin are not treated well when we want to send things to
so all of a sudden it was like whoa, let s stop talking with this guy. we are like $100 billion down because we had stupid politicians. mexico, we re 130 build. that billion. nobody includes the vat tax. nobody ever talks about it.uild. billion. nobody includes the vat tax. nobody ever talks about it.d. billion. nobody includes the vat tax. nobody ever talks about it.bill. nobody includes the vat tax. nobody ever talks about it. that deal was wad tbad the day made it. nobody talks about it, but i talk about it. so we will either renegotiate nafta and i said we won t put the tariffs on mexico and canada. and came in a tod canada is really tough. they send in timber and steel. they send in a lot of things. but our farmers and in wisconsin
the united states, donald trump specializes in sound bites and photo opportunities. people are desperate to understand what are the actual policy changes going to be. so when we heard yesterday well maybe there will be this 20% tax imposed, people are aghast, set their hair on fire and an hour later sean spicer says maybe that s something we re throwing out there. are these ideas one is throwing out there or will there be seismic changes. in terms of mexico, a 20% tariff, not talking about a vat tax, not talking about something mexico would have to pay. it would affect american companies and consumers, when you any about the massive partner the united kingdom people are desperate to know, here is the noise, where is the truth. perhaps because cooler heads prevailed this morning it s been confirmed the president and the president of mexico spoke through translator, it s notable, for close to an hour
to deduct it. it s a tax paid by corporations when they pay their 20% corporate tax. very simple. the simplicity is really the key to the success. and so no. a v.a.t. is not something we would support. the european countries, canada, they ve gsts, but no. that s not the logical conclusion. this is a one and done with a border adjustability tax. how will a manufacturing company of sorts react to this? so, is it do you think the ultimate response will be, let s say take a company like apple, that any they ll then make they ll make apple products in mexico to sell in mexico to avoid taxes, make apple products in america to sell in america to avoid is that where we could be headed, where corporations are encouraged via the tax code to conduct business that way? well, first of all, under our
u.s., well, then we ll have to respond in kind. i don t believe that s going to happen. i don t believe that w.t.o., the world trade organization, would declare our border adjustability tax an unfair tax. this is something we would have to wait and see. but these other countries depend on the u.s. consumers. we are 25% of the world s economy. they would have to entritread carefully and decide where to pick their fights. we re just leveling the playing field. you bought up the v.a.t. tax. that s sometimes repetitive because of the t there. is that where we re headed? no. is that the logical conclusion to where tax reform goes? no, absolutely not. a v.a.t. is something it s a very complicated tax that is put on every step. the value-added. something that s manufactured. this is much simpler. if a product is not made in america, then you are not able