Donald Trump’s threats to battle Mexico over trade, investment and jobs have pushed a growing number of companies operating in the country to put expansion plans on hold until the president-elect fleshes out his policies, business leaders have told Reuters since the Nov. 8 election.
Pledging to recast a joint trade deal and protect U.S. industry from outsourcing to Mexico, Trump landed his first blow last week, announcing a deal with United Technologies Corp’s Carrier unit to stop it shifting about 1,000 jobs south of the border.
Trump’s unorthodox move, involving state tax breaks, sent a chill through executives still uncertain which policies the president-elect would pursue upon assuming office on Jan. 20. On the campaign trail, he threatened to levy hefty tariffs on Chinese and Mexican-made products.
“If he puts an import duty on Mexican goods, it’s going to be a total disaster,” said Maurizio Rosa, chief executive of Codan Rubber Mexico, a maker of hoses for the auto industry with annual sales of some 200 million pesos ($10 million USD).
Codan and other companies in Mexico are plugged into the 1994 North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada, which Trump has threatened to dismantle if he cannot renegotiate it.
Over half of Codan’s output goes directly to the United States, and “probably the rest” indirectly through other firms, said Rosa, whose clients include automakers Nissan Motor Co Ltd, Volkswagen AG (VOWG_p.DE) and tractor maker Kubota Corp.
Until it becomes clear what Trump means for business, new investment at the firm has been put on hold, he said.
To read complete article click here.
more recommended stories
OPINION: The future of real estate in the new sexennium
On the last day of his.
Become a Non-Resident of Canada for Tax Purposes
Canadians residing in Mexico full time.
Austrian Symphony Orchestra will arrive in Yucatan in 2019
The University of Graz-Austria Symphony Orchestra.
Patient from Mérida’s Psychiatric Hospital steals delivery truck and smashes it into a wall
On Tuesday December 12th, a patient.
Mayor walks the streets of Progreso to meet citizen requests
Progreso Mayor Julián Zacarías Curi, accompanied.
The ‘hidden jewel’ of Yucatan that you must visit
Valladolid was named one of the.
New Arrivals on Netflix Mexico in December
December looks great on Netflix. The.
UNAM promotes creation of hummingbird gardens in order to improve ecology
Hummingbirds have a great ecological importance.
Mérida’s soccer team was bought years ago with money from the Sinaloa Cartel
Tirso ‘El Futbolista‘ Martinez Sanchez, a.
Five Haciendas, five different worlds in Yucatán and Campeche
The taste, history and culture of.