Why tariff threat is unsettling – even after US-Mexico deaI
Businesses across the United States and Mexico breathed a sigh of relief after President Donald Trump announced a bilateral agreement Friday over border security that would avert his threatened tariff on Mexican goods.
No industry had been holding its breath more than the auto industry, for which a 5% to 25% tariff could have been disastrous given the huge cross-border flows of parts and cars.
“Our industry is [already] facing 25% tariffs on imported steel, 10% tariffs on imported aluminum, and a 25% tariff on the vast majority of inputs into our manufacturing process that come from China,” says Ann Wilson, the Motor & Equipment Manufacturers Association senior vice president of government affairs. “Additional [tariffs] would mean that suppliers and customers will have to look at the most cost-friendly place to manufacture the components in a vehicle.”
Yet even as an immediate risk
Economies joined by trade‘Space for cooperation’
