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Mexico Already Be Feeling The Pinch Of Trump’s Tariff Threats

The Mexican government is already feeling the strain from President-elect Donald Trump’s threat of sweeping tariffs, and major automakers are reconsidering their investment strategies in the country.

Mazda Motor Corporation, a major international automaker based in Japan, has confirmed that it will reconsider investing in Mexico until it receives clarity from the incoming Trump administration regarding Mexico’s threat to impose 25% tariffs on all products. According to Bloomberg. President Trump, who has promised to launch a tough crackdown on illegal immigration, has threatened to impose tariffs on Mexico and Canada if the governments do not do more to stop illegal immigration and illegal drugs from entering the United States. . (Related: ‘Critical moment’: Democrats call on Biden to further strengthen deportation protections before Trump returns)

“We want to continue investing in this country,” Mazda Mexico director Miguel Barbeito told Bloomberg, but without any guarantees, “the truth is, it’s not good business for Mazda.” he said.

“What happens if the U.S. government imposes tariffs? Well, we have a Plan B. But we’re committed to continuing to grow in this country, both in manufacturing and new car sales,” Barbeit said. continued. “We are confident that both governments, and above all our government, the federal government of Mexico, will negotiate very well.”

Salvadoran migrants cross the Suchiate River into Mexico in a caravan bound for the United States, seen from Ciudad Tecun Umán, Guatemala, November 2, 2018 (Photo by MARVIN RECINOS/AFP) (Photo credit MARVIN RECINOS/AFP via Getty Images)

The uncertainty began when Trump, fresh from his landslide election victory over Vice President Kamala Harris, declared: on social media In November, the governments of Mexico and Canada announced that they would impose 25% tariffs if demands were not met.

In response, Canadian Prime Minister Justin Trudeau immediately contacted President Trump to discuss the situation and said he had had a “good discussion” with the president-elect. Shortly thereafter, Prime Minister Trudeau visited President Trump’s Mar-a-Largo residence and detailed what the Canadian government is doing to further strengthen border security.

In an even more hostile response to this threat, Mexican President Claudia Sheinbaum issued an open letter crediting the Mexican government with reducing encounters with migrants along the southern border, and said that Mexican President Claudia Sheinbaum was The numbers were blamed on the United States. Notably, Sheinbaum also warned that if President Trump goes ahead with his threat to impose 25% tariffs on all Mexican products, the government will respond “in kind.”

“Any tariffs will be met with the same response until they endanger the businesses we all share,” the leftist president said. “Yes, I shared it.”

Mazda appears to be not the only major manufacturer reevaluating its presence in Mexico in response to President Trump’s tariff threats. Tesla, Stellantis and BYD have either canceled or publicly reconsidered their plans in the country following the president-elect’s warning, according to Bloomberg.

The president-elect’s tariff threats are largely consistent with his economic philosophy. candidate at the time explained Scott Bessent, the next Treasury secretary, has been a big supporter of tariffs, calling them “the most beautiful word in the dictionary” in an October interview.

The threat also stands in sharp contrast to President Trump’s hawkish immigration enforcement policies, including launching the largest deportation operation in history, eliminating birthright citizenship for people born to illegal immigrant parents, and tightening the border. He has promised to restart wall construction, hire more Border Patrol agents and hire more people. Other strong proposals.

During the campaign, Republicans hinted at imposing universal tariffs of up to 20% on all imports into the country and tariffs of more than 60% on all imports from China. Since his election victory, many companies have begun moving production out of China to avoid paying high fees.

Mazda spokespeople and the Trump transition team did not immediately respond to requests for comment from the Daily Caller News Foundation.

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