If the Trump administration follows through on its threat to impose a 20 percent tax on all goods coming from Mexico, the price of certain imported foods, such as avocados, could go up.
But the tax will only be on the so-called dutiable value, which means the wholesale price of the avocado when it crosses the border, which runs around 50 cents. That means a Trump-era avocado might be around a dime more, says The New York Times.
Other items essential to good guac are grown in high numbers in the U.S, like onions. Those could be cheaper. One potential plan circulated by GOP leaders is to use a border tax to make up for lowering the corporate profits tax, which would benefit U.S. corporate farms.
“The whole idea behind the House Republicans’ plan is that companies producing in the United States should pay lower taxes, so those companies can hire more workers. The tax burden would be shifted toward importers, but also toward people who buy imported goods,” says the Times.
Onion farmers, for example, might use the extra money to hire more workers, expand their operation and export more of their crop.