15 Dec 2024 11:54 am
no. the manufactures will stay in mexico rather than to make expensive moves. no change in operations in mexico, the tariffs' high prices will be passed to americans.Zeets2 » 15 Dec 2024, 12:50 pm » wrote: ↑ So, will they REMAIN competitive in the US market if they're now forced to pay Trump's tariff? Or will they choose instead to circumvent it by moving the production of those parts back into the US?
Now, many of those foreign auto products may not find it worthwhile to transition production back to the US. A $4 water hose that's made in Mexico may be subjected to the 10% tariff, but is saving 40 cents enough to make such a change? Only the auto maker will determine that for himself, exactly as it should be!
Beyond the obvious and most simple changes, you need to recognize the fact that just the threat of imposing such a detrimental tax to their country, Mexico would choose to negotiate with Trump to avoid such a calamity to their economy by changing their own policies on illegal immigration, curtailing the flow of drugs through the border, and accepting some of the millions of illegals back into their country for THEM to return to Venezuela, Guatemala, Nicaragua, or wherever they came from.
Trump may very well be the absolute best negotiator on the planet, and you can already see how his influence is spreading when he still has over a month before he takes office by the way the caravans of illegals are dissipating: