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GM & Ford: Trump threats to enforce higher border tax to car manufacturers

During Trump’s campaign, there was definite tension alongside his controversial expression towards Mexico and his immigration policies that led to talk of a Mexican wall at the border. Well as it turns out, it is not just Mexican immigrants he is attempting to restrict from entering the US, but also vehicles that are manufactured in the neighbouring country, unless the manufacturer pays high border tax.
Trump’s intentions were clear during his campaign, and any possibility to build and retain jobs in America seemed to be an important aim of his, by drifting businesses away from manufacturing overseas. With an increasing amount of businesses revising their manufacturing strategies, building production plants in areas such as Mexico seems to be a popular option these days, as it is relatively cheap for them to export into the US and they thrive off cheaper overheads.
Trump is not shy of calling out companies such as GM who currently manufacture vehicles in Mexico, in an attempt to steer other manufacturers away from building on Mexican soil, and instead to go and make use of the current capacity in the US It surely comes not by chance or coincidence that Ford backed out of its plans to build some of its smaller model cars in Mexico, just as Trump publically singles out GM and threatens higher border taxes, which could consequently cost Ford a lot of money in the long run if it followed through with its Mexican plans and Trump follows through with his.

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Posted in Automotive.

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