Texas would be the biggest loser in a trade war with Mexico, according to a new report by WalletHub, a personal finance website.

Out of all 50 states, Texas would be hit the hardest if U.S.-Mexico trade relations breakdown under the Trump Administration, the online group reports.

President Donald Trump suggested the U.S. impose a 20 percent tax on Mexican goods to fund the border wall he promised to build and vowed to make Mexico pay for.

“It’s bad economics,” said Stephen Magee, who served as an economic adviser to the White House under four different presidents, including three Republicans.

A finance and economics professor at the University of Texas-Austin, Magee warned a large-scale tariff would hurt Texas businesses and American consumers.

“There’s going to be big increases in oil prices, big increase in computer and electronics, and a big increase to autos and parts coming from Mexico,” Magee said.

If the U.S. imposes a tariff on Mexican imports, Magee expects Mexico will retaliate with a tax on American exports.

“And then we’re losing big jobs and we’re having higher prices and everybody is messed up,” Magee said.

He anticipates Mexico would retaliate with a tax that either equals or exceeds the percentage imposed by the U.S.

“That’s the evils of getting into a trade war and that’s the danger that we are running here and it’s going to be bad for Texas,” said Magee.

Texas exports more goods than any other state in the country and Mexico receives about one-third of the state’s exports.

“I don’t believe you’re going to see a 20 percent tariff,” said Lt. Governor Dan Patrick, who led Trump’s campaign efforts in Texas.

The tax idea proposed by the Trump Administration in the president’s first week in office may have been, Patrick said, “a beginning start of negotiations by the president with the president of Mexico.”

Patrick believes the first suggestion offered by the Trump Administration aimed to show President Trump “was serious about changing things,” Patrick said.

The Republican added, the U.S. has been on the losing side of trade deals for too many years. Patrick also stressed the importance of the trade partnership between Texas and Mexico.

“President Trump knows how to make a deal and he knows how important our relationship is with Mexico,” Patrick said.

According to the U.S. Census Bureau, Texas companies exported $92 billion worth of goods to Mexico in 2015 and imported $84 billion in goods from across the border.

Mexican officials have refused to foot the bill for the border wall, which will reportedly cost $21.6 billion and take more than three years to build.

But Patrick is confident that President Trump and the president of Mexico will come to an agreement without a trade war.

“They will work that out to the benefit of both our country and to Mexico,” Patrick said. “Mexico is an important trade partner to Texas and we’re important to them. America is important to Mexico and vice-versa.”

The U.S. recorded $532.1 billion in imports and exports with Mexico in 2015, according to the latest numbers from the U.S. Department of Commerce.

Outside Texas, some Republicans have spoken out in favor of the tax on Mexican imports. They see the tax as an incentive for companies to stay in the U.S. but Magee argues the overall cost to the economy would outweigh the benefits. 

“It’s a dangerous path to head down,” Magee said.