REALITY BITES….
With America trying to disengage itself from China’s VAST economic imports TO America ?
(And China breathing heavy over Taiwan?)
Why wouldn’t America move its business CLOSER to Mexico?
He’s gonna get phone calls from AMERICAN company CEO’s….
And Trump?
He’s about MAKING MONEY, NOT costing America MORE, eh?
The in-coming, ex- President NEEDS Mexico….
That trend, known as “nearshoring,” gained momentum as President Biden extended tariffs on Chinese imports. Soaring shipping prices during the pandemic heightened the pitfalls of relying on factories across oceans. For companies seeking to close the distance between plants in Asia and customers in the United States, Mexico beckoned as an attractive place to manufacture their wares.
Then last month, President-elect Trump threatened the economics of nearshoring by promising to impose 25 percent tariffs on all goods entering the United States from Mexico and Canada. Mexican industry was confronted with a high-stakes question: Was Mr. Trump bluffing, hoping the threat would pressure the Mexican government to halt the movement of people and drugs toward the border? Or was he really preparing to put tariffs on Mexican imports to force companies to move production to the United States?
Hanging in the balance is the pace of investment and job growth in Mexico, along with the availability of a vast profusion of imported goods in the United States — from fresh fruits and vegetables to auto parts.
At the Trane factory in the industrial enclave of Apodaca, Mr. Córdova is getting ready. If the tariffs materialize, the company could shift orders to its American factories. Yet he remains optimistic that the status quo will prevail, because the Mexican and American economies depend on each other for parts and raw materials for their own finished products. Though Mr. Trump is known to be unpredictable, Mr. Córdova cannot imagine him impeding the movement of products across the border — a course that economists warn would raise prices for American consumersand slow economic growth….
…
As the Trump administration vows an expanded trade war, businesses in Mexico are continuing with factory expansions. They assume their country remains central to the most fervent American aim: reducing dependence on factories in China.
Many Mexican business leaders assert that their companies are positioned to thrive during another Trump administration. So long as he proceeds with his promise to increase tariffs on Chinese imports, that will amplify the need for alternative places to manufacture goods.
“Trump hates China more than he hates Mexico,” said Isaac Presburger, whose family apparel business outside Mexico City has long exported to the United States. “This is a huge opportunity.”…
…
“Trump can’t do what he wants to do on China without Mexico,” …..
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