Ford and GM Team Up With Mexico To Try And Contain Trump

In the end - there will be no border tax on Mexican goods - because Mexico will just add its own tax to American Goods in reply - causing a trade war that cannot be won by either side.

Mexico holds no cards. They are 100% at Trump's mercy.

Nonsense Matt - it is the US companies and US jobs that would lose on this. If Trump were to put a import tax or Tariff on cars made in Mexico - they do not represent ALL of the cars in those particular segments. So - there would be others offering similar size cars for less money - which would reduce the sale of the cars formerly coming from Mexico - and reduce the sales of the Dealerships selling and servicing those cars (And cause job losses). While we do have a trade deficit(about 58 Billion) with Mexico -we STILL export about $240 Billion dollars of items to Mexico(we import about 298 Billion - it is NOT that far apart) - and IF they put a tariff on those items - we would lose those sales to other countries. More Job Losses.

The companies cannot just move the production of the cars to the USA - the companies do not have enough capacity alone - PLUS - many of the cars would no longer be profitable enough to bring in. BUT - at least with GM - most of those cars can come from CHINA - with which we have a far more complicated trade/monetary situation(CHina holds a HUGE position of the DEBT of the USA - and can control its monetary policy because its monetary relationship with the rest of the world is fixed by them - they do not allow their currency to float) - and Trump has less possibility of waging trade war with China. If the cars origins change to another country - like China - we do not gain anything but a trade war with with Mexico - and likely reduced sales to Mexico.

The most basic problem that people forget is that the average person in China and Mexico is POOR compared to the USA. A well paid worker in Shanghai might get $5000 equivalent a year - and it goes DOWN from there with the average in China being in the $2-3000 range. They don't import much American Goods because they cannot afford them - what they do import is raw materials and soybeans. And while it may be hard to understand - Mexican Factory workers actually make LESS money than those in China (Minimum wage is the equivalent of about $6 a DAY).

Mr. Trump would ONLY gain money IF American people actually BOUGHT the cars at a higher price due to the Tariffs as well. IF they don't - we get nothing but lost jobs in the USA. (sales - service - and support - and loss of sales of exported product also taxed by Mexico. So - Ultimately -it would be the American consumer paying the Bill - not Mexico..

And TomM pontificates again showing his "yesterthink" stasis as an Alt-Left tool.

Anyone know why I can click on up arrow like I just did but not on down arrow on a comment?

Great question. It's annoying to have to hit the refresh button to see if took. It wasn't always this way. Comments, 001, 009,or 00R?

Aside from natural resources to make finished goods from to sell back to the US, what does Mexico really buy from the US? Factor in all the drugs flowing north and what does the trade deficit really look like?

The point here is Mexico needs the US market way more than the US needs Mexico. Automation and cheap electricity will level the playing field with cheap labor nations.

The border tax will not happen. It won't be due to Mexican leverage, but the leverage of Corporate America that has made significant supply chain investments in Mexico. As well as foreign firms with US production who also have production sites in Mexico. Trump can talk about it, but it will die a quick death in Congress and never make it to the Senate... if it even gets that far. Same goes for the $1T infrastructure bill, when exactly would that ever get paid for? A Congress that has wanted a cut for ever $1 spent is not going to approve that either.

The point you make CanadianComments is valid but we working class Americans are hoping Trump will stand up to corporate America and tell it what the rules are rather than the way corporate America has dictated to the U.S. for many decades on what it needs for better profits. The only reason the corporate giants have moved production into Mexico is due to lower wages and less regulation. So if we cut the regulation here and mandate a tariff on anything not made by Americans then we can mitigate the cheaper wages. It will hurt the corporations bottom line but at the end of the day all of the profits they are currently making from overseas/over border workers are not helping any of the unemployed/underemployed in the U.S. Which leaves us with no hope for a better life. We elect our officials in Government to represent us and our needs, not the needs of poverty stricken(Insert Third World Country Name). What the globe needs to recognise is that this election is a result of working class America telling our representatives we really do not want to sacrifice any more of our industry and jobs because of the struggles of some race and for what the U.N. stipulates we need to do to help them. From my position the U.N. can go @#ck itself. The U.N. is a group of wealthy elitists that tell the rest of the world what to do for their benefit and soon we the Free need to stand up to them and tell them "No More" with plenty of force if needed.

Trump stand up to corporate america? I have a bridge in brooklyn to sell you. Those "jobs" here for manufacturing will go to robots. Trump and the republicans are doing all they can to create even more unemployment.