It’s a new year, and a completely new economic paradigm is in the works as the Trump economic plan begins to come together.
Manufacturing has been migrating to Mexico since NAFTA came into effect more than 20 years ago. Now, Trump is trying to promote a business culture that prioritizes U.S.-based manufacturing for our flagship corporations. Trump’s tweets are calling out big name corporations, and specifically warning them that they should make their wares in the United States. This is already having an enormous effect on massive business dealings, and causing the Mexican Peso to tank.
Deals, deals, deals
Right after the election, with the help of Governor Mike Pence, a deal was struck to prevent the air conditioner maker Carrier from moving jobs to Mexico. This week, while Trump threatened to impose tariffs on General Motors for moving manufacturing jobs to Mexico, Ford made a big splash by cancelling a move to Mexico. Ford instead chose to keep making their compact sedan, the Ford Focus in Michigan, and nixed construction on a new factory in Central Mexico.
A huge problem for Mexico
Mexico’s economy has been fueled by a boom in auto manufacturing in recent decades. In fact, Mexico has become one of the biggest car manufacturers in the world since…