The tax would impact a number of vehicle manufacturers.
President Donald Trump is once again threatening tariffs on vehicles imported to the United States from Mexico. The president’s latest threat is the second to rock the auto industry in less than a week.
President Trump ended last week by threatening to close the United State’s border with Mexico due to concerns over illegal migrants. Such a move would have paralyzed the U.S. auto industry as virtually every automaker sources some vehicle components from Mexico.
The president later backed off that threat, saying he would give Mexico a “one-year warning” to stem the flow of illegal drugs entering our country from the southern border.
However, the industry’s sigh of relief was cut short on Thursday when president Trump took to Twitter to announce that he was considering a 25 percent tariff on all vehicle brought into this country from Mexico. The president also threatened to upend the NAFTA-replacing United States-Mexico-Canada Agreement.
“Mexico, for the first time in decades, is meaningfully apprehending illegals at THEIR Southern Border, before the long march up to the U.S. This is great and the way it should be. The big flow will stop,” Trump Tweeted. “However, if for any reason Mexico stops apprehending and bringing the illegals back to where they came from, the U.S. will be forced to Tariff at 25% all cars made in Mexico and shipped over the Border to us. If that doesn’t work, which it will, I will close the Border. This will supersede USMCA.”
Although not as drastic as completely shutting the border, a 25 percent tariff on Mexico-made vehicles would still have a serious impact on the auto industry. A number of companies import vehicles from Mexico, and switching production to the U.S. isn’t a feat that can be achieved overnight.
The tax would impact a number of vehicle manufacturers.
President Donald Trump is once again threatening tariffs on vehicles imported to the United States from Mexico. The president's latest threat is the second to rock the auto industry in less than a week.
President Trump ended last week by threatening to close the United State's border with Mexico due to concerns over illegal migrants. Such a move would have paralyzed the U.S. auto industry as virtually every automaker sources some vehicle components from Mexico.
The president later backed off that threat, saying he would give Mexico a "one-year warning” to stem the flow of illegal drugs entering our country from the southern border.
However, the industry's sigh of relief was cut short on Thursday when president Trump took to Twitter to announce that he was considering a 25 percent tariff on all vehicle brought into this country from Mexico. The president also threatened to upend the NAFTA-replacing United States-Mexico-Canada Agreement.
"Mexico, for the first time in decades, is meaningfully apprehending illegals at THEIR Southern Border, before the long march up to the U.S. This is great and the way it should be. The big flow will stop,” Trump Tweeted. "However, if for any reason Mexico stops apprehending and bringing the illegals back to where they came from, the U.S. will be forced to Tariff at 25% all cars made in Mexico and shipped over the Border to us. If that doesn't work, which it will, I will close the Border. This will supersede USMCA.”
Although not as drastic as completely shutting the border, a 25 percent tariff on Mexico-made vehicles would still have a serious impact on the auto industry. A number of companies import vehicles from Mexico, and switching production to the U.S. isn't a feat that can be achieved overnight.
