{"id":2353,"date":"2018-07-20T18:07:34","date_gmt":"2018-07-20T16:07:34","guid":{"rendered":"https:\/\/wmp.mx\/?p=2353"},"modified":"2018-10-17T18:57:42","modified_gmt":"2018-10-17T16:57:42","slug":"u-s-customs-why-the-automotive-industry-continues-to-invest-in-mexico","status":"publish","type":"post","link":"https:\/\/wmp.mx\/en\/u-s-customs-why-the-automotive-industry-continues-to-invest-in-mexico\/","title":{"rendered":"Why the Automotive Industry continues to invest in Mexico"},"content":{"rendered":"

U.S. President Trump threatens automotive manufacturers to\u00a0impose protectionist tariffs when transfering production sites from the United States to Mexico. However, that does not seem to prevent companies from investing in Mexico.\u00a0<\/em><\/p>\n

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It was just in April 2018 that the EU and Mexico had reached a new trade agreement<\/a>\u00a0and also extended their\u00a0\u00a0economic relations at\u00a0the Hannover Messe 2018<\/a> . Punitive tariffs could harm German-Mexican trade relation and especially German automobile manufacturers in Mexico.<\/p>\n

If Trump\u00b4s threat of imposing 25% tariffs on the automotive industry was put into effect, Mexico as a industry location could lose attractiveness: as a matter of fact production would become more expensive and demand would be affected. Experts believe it is improbable that the German car manufacturers will move their production from Mexico to the United States due to the increase of tariffs. On the contrary, a counter effect is expected. Companies probably would invest more in other markets like Europe, China, or Japan. Supporting this assumption, it is worth mentioning that the EU and Japan have just signed the Japan-EU Free Trade Agreement JEFTA.<\/p>\n

So far, the automotive industry still counts on Mexico. The reasons for this are numerous, just to mention some of them:<\/p>\n