The Effect of the Mexican Tariff

2019 June 1
by bc3b

Mexico is more than happy to let anyone from Central America come through their country … as long as they keep heading north and into the land of the gringos.

President Trump is planning to hit Mexico where it hurts most – in the pocketbook. Mexico has taken full advantage of NAFTA. Its manufacturing has increased tremendously since the mid-1990s as multi-national companies headquartered in the US have shifted manufacturing operations from US plants to Mexico costing US workers millions of jobs.

Since NAFTA companies producing everything from air conditioners to cookies have relocated plants to Mexico and ship the majority of their products back to the US.

The auto industry is one of Mexico’s largest sources of revenue. Last year Mexican auto plants produced 4.1 million vehicles (36% of the 11.4 million produced in the US). Most vehicles produced in Mexican automotive plants are exported to the US. Virtually every manufacturer has plants in Mexico. Some vehicle lines produced there include:

  • Audi Q5
  • BMW 5 Series Security
  • Cadillac SRX
  • Chevrolet Blazer
  • Chevrolet Cruz Hatchbacks
  • Dodge Journey
  • Fiat 500
  • Ford Fiesta
  • Ford Fusion
  • GMC Terrain
  • Honda Fit
  • Honda CR-V
  • Honda HR-V
  • Jeep Compass
  • Kia Forte
  • Lincoln MKZ
  • Mazda 3
  • Nissan Sentra
  • Nissan Versa
  • Nissan NV200 (commercial van)
  • Toyota Yaris
  • Toyota Tacoma
  • VW Jetta
  • VW Gulf
  • VW Tiguan

These are lines where the entire production is in Mexico. Other vehicle lines (including Chevrolet, GMC and Ram) produce select models (e.g. crew cabs) in Mexico.

So, how will the tariff impact Mexico? When FCA introduced the current generation of Jeep Compass in 2018 it moved production from Belvedere, IL to Toluca, Mexico. Assuming a Compass has a wholesale value of $20,000, a 5% tariff would increase its  cost by $1,000.

To a new vehicle buyer interested in a Jeep, suddenly a larger Jeep Cherokee, manufactured either Belvedere or Toledo, becomes a more interesting and viable option. If a customer buys a Cherokee instead of a Compass, the US economy benefits and the Mexican economy suffers. Laid-off workers in Belvedere are re-called; Mexican workers lose their jobs. It’s that simple.

The globalists are already predicting gloom and doom. The US Chamber of Commerce is threatening legal action and The Wall Street Journal is in full attack mode. Let’s see how this plays out.

 

What if their cost was almost the same?

See the source image

This probably is the last Sunday for Ice Girls.

22 Responses leave one →
  1. 2019 June 1 5:15 pm
    [1]
    drdog09 permalink

    Oh my God! The avocados! How will the gringos stand it without their gauch for the tacos??

  2. 2019 June 1 5:40 pm
    [2]
    justrand permalink

  3. 2019 June 1 6:11 pm
    [3]
    bc3b permalink

    JR –

    Wouldn’t a neutron bomb work better? The buildings would be standing and the people would be gone.

  4. 2019 June 1 9:49 pm
    [4]
    JimNorCal permalink

    The Mexico tariffs are a huge game changer.
    It’s the sort of action we Deplorables have been advocating.
    The pushback will be immense. I read about Obama, Kerry and others traveling the globe telling our enemies to hang tight till their ilk is back in power.
    Dan Bongino, former Secret Service agent, is calling for a mass demonstration in DC if Dems try for impeachment. Rev Graham has designated tomorrow as a day of prayer in support of the President.
    It’s hard to know but we may be coming to a time of action.

  5. 2019 June 2 5:35 am
    [5]
    JimNorCal permalink

    Hondurans burn the US Consulate in Honduras.
    So let me understand this… their people are illegally crossing in droves…. expect us to take care of them and this is what we get in return…

    https://mobile.twitter.com/cs00582sc/status/1135019580890464257
    — Cindyseestruth (@cs00582sc) June 2, 2019

  6. 2019 June 2 6:11 am
    [6]
    drdog09 permalink

    3,

    Nah. The chinese own in all now. Flatten it. Dallas, Orlando and NYC have production facilities. Won’t be missed.

  7. 2019 June 2 6:55 am
    [7]
    justrand permalink

    On June 10th, 1692, Bridget Bishop was convicted of witchcraft and hanged in Salem, Massachusetts. Bridget was unable to prove herself INNOCENT…even though the “authorities” were not able to prove her guilty. At least in jolly old England they had the “Trial by Water”…where a suspected Witch was bound with ropes and dropped in a body of water! If they sank (which most did because their arms were bound) and died, then they were proclaimed INNOCENT. Dead, but innocent! If they somehow survived then they MUST be a witch…and so they killed them.

    Robert Mueller’s 8 minute “pronouncement” was of a similar nature…minus the water.

    Mueller said he and witch-hunters did “not have confidence that the president clearly did not commit a crime”. Note: “a crime”. Not “THE” crime…for which the witch-hunters began looking…just “A crime”. He said they would have said so.

    And so Bobby Mueller told the Congress to begin a “Trial by Ordeal”. How downright Medieval.

    Again, if someone starts to investigate Y-O-U, wouldn’t you like to know if you were being investigated relative to a PARTICULAR crime?? Versus them just rooting around in your ENTIRE LIFE to see if they could find “A” crime???

    Welcome to Salem, Massachusetts…have a nice day.

  8. 2019 June 2 9:09 am
    [9]
    drdog09 permalink

    Lets throw another one on the barbie — https://www.zerohedge.com/news/2019-06-02/tesla-spontaneously-combusts-while-plugged-supercharger — The only thing hot about tesla stock is the cars burning up.

    To follow JRs lede why not put the perps of Russiagate in a tesla. Trial by Fire.

  9. 2019 June 2 9:24 am
    [10]
    drdog09 permalink

    8,

    Great find and an important lead. Guess who is missing from this whole tar baby? The press of course. They are skipping out like a cheerleader at a bad football game. They too need to be held to account.

    Certain Pressitutes were leaked to by government entities. Its about time that said Pressitutes come clean and name names. Yeah I know all the principles of confidential sources, but in this case it is critical to find out who said what to whom. So I would offer a devils choice — divulge your source or face charges of RICO both as individuals and as a corporation. Failure to do so will be your demise.

  10. 2019 June 2 9:49 am
    [11]
    drdog09 permalink

    It is now suggested that the Meuller report itself is a fraud — https://www.zerohedge.com/news/2019-06-01/its-all-fraud-deceptive-edits-found-mueller-report

  11. 2019 June 2 11:05 am
    [12]
    bc3b permalink

    Stopped at Meijer to do some shopping after mass, One of the check-out stand magazine racks had a (I am sure glowing) article on Bettigieg :Small Town Mayor.} Since when is a city of 102,000 with big city crime stats considered a “small town?”

  12. 2019 June 2 11:40 am
    [13]
    drdog09 permalink

    An interesting observation most here would agree — https://www.youtube.com/watch?v=LCkwiWEkLrM

  13. 2019 June 2 1:36 pm
    [14]
    bc3b permalink

    Signs calling for massacre of Jews in Toronto Islamic parade:

    https://www.israelnationalnews.com/News/News.aspx/264053

  14. 2019 June 2 2:37 pm
    [15]
    JimNorCal permalink

    https://dailycaller.com/2019/06/02/daily-beast-backlash-doxxing-black-forklift-operator/
    DAILY BEAST HIT WITH WAVE OF BACKLASH FOR DOXXING BLACK FORKLIFT OPERATOR

    https://www.breitbart.com/tech/2019/06/02/daily-beast-says-facebook-helped-them-dox-trump-supporter/
    “Facebook confirmed to the reporter that the video was first posted “directly from Brooks’ personal Facebook account.”
    “So… Facebook is handing over information to reporters regarding what people are doing on their personal Facebook accounts?”

    “The guy didn’t break any laws. He didn’t even violate any of Facebook’s policies, according to the company. The doctored video is still up! In Facebook’s eyes, this guy did nothing wrong — yet they just handed over his private data to a reporter. How is that justifiable?”

  15. 2019 June 2 4:09 pm
    [16]
    JimNorCal permalink

    Interesting if true.
    A report that Hillary’s IT guy had his house raided.
    https://uploads.disquscdn.com/images/853228de122a188233b20d424626d437c6613f2bf8fe95e4cfb60b6b30ebe8af.jpg

  16. 2019 June 2 4:23 pm
    [17]
    drdog09 permalink

    “A report that Hillary’s IT guy had his house raided.”

    Surprised this does not happen more often. A good chunk of IT people hold the keys to the kingdom and would be a wealth of data a typical investigation.

  17. 2019 June 2 5:07 pm
    [18]
    JimNorCal permalink

    Now people are speculating the report is a hoax designed to make “pro Trump simpletons” look bad for falling for it.
    My bad!

  18. 2019 June 2 5:08 pm
    [19]
    JimNorCal permalink

    This one seems legit 🙂 🙂

    Dem candidate Swalwell tweets how to “own” NRA and 2nd Amendment supporters.
    https://twitter.com/ericswalwell/status/1135001434489909248/photo/

    Many good responses perhaps this one wins the Internet.

    “Democrats love owning people.
    We once had to fight a civil war to make them stop.”

  19. 2019 June 2 5:39 pm
    [20]
    drdog09 permalink

    Ha!!

    NYT tells reporters/staff not to appear on MSNBC Shows.

    CNN is telling freelancers they will be paid net+90 from the date invoice received.

    They are truly eating their own.

  20. 2019 June 2 5:40 pm
    [21]
    drdog09 permalink

    19,

    Twitter pulled it.

  21. 2019 June 2 7:34 pm
    [22]
    Eph permalink

    19,

    Too bad there are 23 others saying the same….

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