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back to index backEUROtalk February,  2017


European Carmakers Weigh Options Amid Mexico Tax Threats

European automakers that count on their plants in Mexico to supply the U.S. market are weighing their options in the face of threats from President Donald Trump to impose stiff penalties in his bid to return manufacturing jobs to the United States.

Trump has warned the U.S. could slap massive border taxes on car companies that benefit from selling their vehicles in the U.S., but are not creating jobs for Americans.

Analysts say Trump's efforts to shift production to the U.S. also ties into his greater strategy on Mexico. Trump has said he wants fair trade that will result in more jobs for Americans, an end to illegal immigration, and an end to the flow of drugs and violence across the U.S. southern border.

Mexico's extradition of notorious cartel leader Joaquin El Chapo” Guzman to the U.S. on the eve of Trump's inauguration is a sign the American president's strategy could be working.

Trump’s insistence that Mexico pay for a border wall and his caustic response to the cancellation of a visit by Mexican President Enrique Pena Nieto was a signal that the U.S. leader is not ready to soften his approach, despite goodwill gestures from Mexico, which also is the United States' No. 2 export market.

To read entire article, please click here.

Source: VOA - GAI






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