President Donald Trump’s proposed 20 percent import tax on Mexican products to pay for an immigration control wall along the border between the U.S. and Mexico would have a big impact on Colorado’s rural economy, according to economists. Such a tax would increase the price of Mexican goods for U.S. consumers, who would ultimately pay for Trump’s immigration control wall on the border between the two countries, opponents say.

Any such tax hike would require approval from Congress, and among members of Colorado’s Congressional delegation who reacted to Trump’s wall and import tax proposal or responded to requests from The Colorado Statesman, Republicans took a wait-and-see stance while Democrats were opposed.

Agricultural products are a top import from Mexico to the United States, some of them making their way to Colorado’s grocery stores and restaurants. U.S. Census statistics place Mexico as the third-largest exporter of foreign goods to the state. Many products, such as clothing, manufactured products and food, come to the U.S. from Mexico.

Mexico is Colorado’s second biggest export destination and third biggest source of imported goods, according to the World Trade Center Denver. Colorado imported more than $1.7 billion worth of goods from Mexico in 2015, with more than half of that industrial machinery and computers. World Trade Center President Karen Gerwitz told Channel 7 she is “absolutely concerned” about the proposals.

“Not only will it impact our companies’ supply chains for importing components for more advanced products that we produce, the cost of increased tariffs will be borne by consumers,” Gerwitz said. That tariff would likely be passed on in the form of higher prices.

Mexico has more free trade agreements than any other country, Gerwitz said, and could decide to trade with those nations instead of the U.S., hurting Colorado businesses that rely on imports and exports.

What they said about the tax

Here’s what some of Colorado’s Congressional delegation had to say about the possible import tax and its impacts:

“This ‘import tax’ will be added to the sale of products from Mexico, putting the burden on American consumers – not the Mexican government or corporations. This is yet another means by which Americans will have to pay for the wall.” – Democratic U.S. Rep. Dianne DeGette.

“We continue to monitor the mentioned ‘import tax’ proposed by this administration, but the Congressman holds the position that trade with Mexico is important not only for their economy, but to ours as well. When a more concrete plan (actual text) has been presented, I would be happy to follow-up with you on this matter.” – Daniel Bucheli, communications director for Republican U.S. Rep. Mike Coffman, in an email response to the Statesman’s request for a comment from Coffman.

“I will be reserving judgement until I see more concrete details in a legislative proposal. Having said that, I am generally opposed to tax increases and am skeptical of ratcheting-up the already high tax burden faced by the American people.” – Republican U.S. Rep. Doug Lamborn.

Tax ‘just an option’ at this point

The Trump administration said a 20 percent tax is just one of its options, and White House press secretary Sean Spicer played down the possibility shortly after Trump proposed it. According to Politico, Spicer described the tax on imports as one possibility for raising revenue, not a specific policy proposal.

“The idea was that there have been questions about how the president could pay for the wall,” Spicer was quoted saying by Politico. “One idea through comprehensive tax reform is that there could be this idea that (House) Speaker (Paul) Ryan and others have floated, but through tax reform you could actually look at imports from countries that we have a trade deficit with that could generate revenue. And the idea is to show that generating revenue for the wall is not as difficult as some might have suggested.”

Spicer then stated such a tax “could be instead of 20 percent, it could be 18, it could be 5. We could go in another direction, we could talk about tariffs, we could talk about, you know, other, custom-user fees, or a hundred other things.”

Mexican officials have repeatedly said they will not pay for the wall while the shrewd businessman turned president continues to say they will.