Issue of 20% tariff on Mexican goods blew up big time late afternoon yesterday when it was floated by White House Press Secretary Sean Spicer. ‚ÄúWe can do $10 billion a year and easily pay for the wall just through that mechanism alone,‚ÄĚ he said. But hours later, he walked back the proposal as just one of the ‚Äúoptions‚ÄĚ under consideration. Still, couldn‚Äôt have been good for Constellation folks to see headlines like the NY Post‚Äôs frontpager this morning: ‚ÄúCorona to Pay for the Wall.‚ÄĚ
Constellation Brands Beer Division ‚Äúis caught in a whipsaw between Trump, conservatives in Congress and now the border wall politics,‚ÄĚ said a source. But it‚Äôs already apparent that idea of taxing Mexican goods will meet lotsa resistance, even from Republicans, as Wash Post showed. Three Republican Senators objected right away. ‚ÄúSimply put, any policy proposal which drives up costs of Corona, tequila, or margaritas is a big time bad idea,‚ÄĚ SC‚Äôs Lindsey Graham tweeted. Earlier he said: ‚ÄúBorder security yes, tariffs no.‚ÄĚ Senator Sasse (NE) said: ‚ÄúTariffs are a tax on American families.‚ÄĚ And Senator McCain said he‚Äôs ‚Äúdeeply concerned.‚ÄĚ Even #2 Repub in Senate, John Cornyn of TX, tweeted: ‚ÄúMany unanswered questions about proposed ‚Äėborder adjustment‚Äô tax.‚ÄĚ Since Repub Senate majority slim at 52, these early hints at skepticism or even resistance matter in terms of how politics play out, INSIGHTS hears. In fact, ‚Äúoddly enough,‚ÄĚ said source, ‚Äúthis was a good day‚ÄĚ for Constellation. Constellation clearly ain‚Äôt sitting still, hiring several DC lobbying firms, including prominent Democratic lobbyist Heather Podesta + Partners, which has A-list of corporate clients, including Toyota, Pepsi, Red Bull, Home Depot for starters. But now that idea of border tax out in open, ‚Äúrushed out in order to retaliate,‚ÄĚ wrote Post, it will take some time to figure out if that‚Äôs even what Trump administration pushes for, let alone if it can pass.