Automakers Look to Mexico After Trump's Threats Paul A. Eisenstein - NBC News | |
go to original January 20, 2017 |
Mexico Attractive to Automakers After Trump's Threats (Wochit News)
Update: Mexican Peso Strengthens Against US Dollar After Trump Speech (CNBC)
President-elect Donald Trump's repeated attacks on Mexican auto imports has collapsed the peso — which has ironically made Mexico a more inviting location for American manufacturers.
Trump has repeatedly warned automakers they could be hit with a 35 percent tariff on imports, but some observers believe such threats could actually make it more attractive to invest south of the border.
Several high-level auto industry officials told NBC News that a sharp slump in the price of the peso could more than offset any import tariffs, leading them to consider new Mexican manufacturing options. The unexpected consequence was highlighted by former U.S. Treasury Secretary Lawrence Summers during a speech on Wednesday at the World Economic Forum in Davos, Switzerland.
"The decline in the peso is a dagger at Ohio," said Summers, who served in the Clinton administration from 1999 through 2001. "It is a major change in the relative attractiveness of locating production activity in Mexico versus locating it in the American heartland."
Almost from the moment he entered the 2016 president campaign, businessman-turned-politician Donald Trump has criticized the automotive industry for investing in Mexico, a country now among the world's five largest auto producing nations. Initially, the focus was on Ford which, last April, said it would move its small car production to Mexico. But in recent weeks, the president-elect has also targeted such manufacturers as Toyota, BMW and General Motors.
The threats have wreaked havoc on the Mexican economy. And the peso has collapsed. It is currently trading at nearly 22 to the American dollar, compared to 18 on election day. And that was already down sharply from the beginning of the year, as Mexican trade became an election hot-button issue.
Read the rest at NBC News
Related: Savvy CEOs Are Learning How to Manage Donald Trump (Standard Examiner)
Related: Mexican Peso May Slump to Record Low on Trump Trade Moves - Traders (Reuters)
Related: Canadians Should Be "Very Afraid" of Trump Presidency, Says Pollster (National Observer)
Related: Trump as Job Creator - Hope or Hoax? (CNN)
We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!
From activities like hiking, swimming, bike riding and yoga, to restaurants offering healthy menus, Vallarta-Nayarit is the ideal place to continue - or start - your healthy lifestyle routine.