The United States’ border countries are reportedly gearing up to talk trade this coming summer in an effort to renegotiate the North American Free Trade Agreement, but Mexico has a staunch message for the U.S.
In an interview with Bloomberg, Mexico’s senior trade negotiator, Ildefonso Guajardo, stated his country would walk away from NAFTA altogether if tariffs like what President Donald Trump have proposed are implemented. Specifically, the president has called for a 20 percent tariff on vehicles made in Mexico that are shipped back to the U.S.
“The moment that they say, ‘We’re going to put a 20 percent tariff on cars,’ I get up from the table,” Guajardo said in an interview. “Bye-bye.”
The senior trade negotiator also stated if talks do go south (no pun intended), “it wouldn’t be an absolute crisis.” At that point, the U.S. and Mexico would be regulated by the World Trade Organization, which allows a maximum tariff placed on a country to be capped at three percent. A tariff would also raise the prices of U.S. goods made in Mexico for consumers.
Much of the Mexico-made banter originated from President Trump calling out General Motors over the production of the 2017 Chevrolet Cruze hatchback. The hatch is made in Mexico, while the sedan is built in Lordstown, Ohio. Since then, GM has defended its position and stated it would not be shifting production to the U.S.
Unifor, Canada’s automotive union, and the UAW have both expressed willingness to renegotiate the trade agreement as well.
Comments
I don’t know much but 20% sounds waaay to high… What are other countries charging? I am sure there are work arounds. GM is making just a few in Mexico that would even come back. You can only force corporate america to do something for a while and then boom…
80% of Mexico’s trade is with the US. They’re screwed.
if nafta gets dissolved, trade falls under wto rules.
so this talk of a 20% tariff against mexico is a con.
What? Trump con somebody?!? Get out! You must be a false flag or something.
Perhaps there is more to it than you two know about. This is also a response to China’s tariffs which I assure you are higher than 3%.
About time an American leader stood up for America.
Trump has to pay for his harebrained corporate tax giveaways somehow. Its an attractive sounding option for his support base until they learn its pure fantasy–like the republican plan to “replace” and improve upon the ACA–and that they’re the ones that will ultimately make up the difference, and suffer the consequences.
first trump said the plan would be out when his health secretary got confirmed. that came and went w/o a plan.
then last week trump said healthcare is complicated. really?
republicans had years to propose a counter plan to the ACA. after all that time, still nothing.
so trump has promised better healthcare for less. based on the past, i wouldn’t bet on it.
He has been President for less than 2 months. It will take a little more time to undo all the damage Obama caused.
Look at the damage that Bush caused. Almost blew up the world financial system and nearly bankrupted the US. And managed to lose 2 wars that he started. It took 8 years for Obama to fix that but the US is still weakened.(permanently)
The real question now is will Trump run the US into the ground like he did with so many businesses. Who the hell goes bankrupt running a casino? Trump inherited his money and blew most of it.
Trump need to learn a little give and take. He’s dealing with countries now, not individual companies. Manufacturer’s like GM are thinking globally and Trump just thinks nationally. If he thinks manu’s are going to shut down every Mexico plant and spent hundreds of billions each to rebuild and reopen US plants, forget it. Manu’s will scale down both costs and production (so profit ratios stay the same) and focus on growing other markets like South America, the Pacific Rim and more into Europe and Russia. How many people are honestly ready to pay 40% more for the exact same product just because it is made in America due to US labor rates and employee benefits being so much higher than Mexico. $40,000 US trucks will be $48,000, a $20K Cruze will be $24K now, etc. I wonder how Trump will feel when everyone is driving Toyota’s and Hondas that are built in America but the corporate profits are sent back to Japan.
If Trump imposes a 20% tariff, Mexico will just go to the WTO and tell them to impose the 3% law and Trump will have to take his tail between his legs. If Trump decides to walk away from or defy the WTO, well that’s something the US will take years to overcome the ramifications of.
I still think he is planning on the 20% to pay for the wall so he can keep face by saying “See, the US didn’t pay for it” when in reality the US will pay for it because US consumers will be paying 20% more for the exact same products.
People are already buying imports made in America. They can not increase the cost of a Cruze (but they wouldn’t need to because most are made here anyways) because the competition’s price will stay the same. It will force the manufacture to lose profits or build more here. I’m guessing the latter will happen.
The whole point of give and take is not to start in the middle but to end up in the middle. That’s what is happening, he is starting out with outrageous proposals and will end up with less outrageous deals that benefit Americans. I do believe he knows a thing or to about the “the art of the deal”.
Are Americans will to pay 20% more for a product if that means not having to support Mexico any more?
20% is worth it to me!
Mexico’s President has an approval rating worse than Trump .
NAFTA basically was created to help lift Mexico’s economy so they could afford to buy U.S. and Canada’s products . But it was the greed of our major corporations that saw the agreement as a way to build product in a workforce that would be paid less than us and then ship back over the border and those companies made huge profits .
If Mexico was really a true friend of the United States they would help us stop the illegal immigrants from using their country as a gate- way for S. Americans to enter our country .
Mexico can talk big , but they need us more than we need them . Instead of imposing tarriffs lets just renegotiate NAFTA and bring it more up-to-date .
https://ustr.gov/countries-regions/americas/canada