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Significance
Trump has threatened numerous car manufacturers in recent weeks, in an apparent effort to bring back or retain US manufacturing jobs. While his comments have been downplayed by most companies, they appear to have already had a role in scuppering some Mexican investment plans.
Impacts
Trump's threats will push down the value of the peso for some time to come.
The weak peso, paradoxically, could create an incentive for some manufacturers to move production to Mexico.
US automakers may lobby Congress to blunt any protectionist actions against their Mexican operations.
Mexico's firm free-trade stance and the threat of a trade war will preclude any protectionist response.
Keywords:
Mexico,
LA/C,
NA,
United States,
Canada,
Germany,
Japan,
economy,
industry,
international relations,
politics,
social,
automobile,
employment,
foreign investment,
foreign trade,
manufacturing,
private sector,
exchange rate,
wages
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2017
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