Mexico Already Feeling The Pinch Of Trump’s Tariff Threats

The Mexican government is already feeling the squeeze from President-elect Donald Trump’s threats to impose sweeping tariffs, with a major auto manufacturer now reconsidering its investment strategy in the country.

Mazda Motor Corporation, a major international auto manufacturer based in Japan, confirmed it’s reconsidering investments in Mexico until it receives clarification from the incoming Trump administration on threats to slap the country with 25% tariffs on all goods, according to Bloomberg. Trump, who has pledged to embark on a hardline illegal immigration crackdown, has threatened to hit both Mexico and Canada with tariffs unless their governments do more to stop the flow of illegal migration and illicit drugs into the U.S.

“We want to continue investing in the country,” Mazda Mexico Director Miguel Barbeyto said to Bloomberg, but without any guarantees, “the truth is that it would not be a good business for Mazda Motor Corporation.”

“What happens if the United States government imposes tariffs? Well, we have a plan B. But we are working to continue growing in the country, both in manufacturing and in the sale of new vehicles,” Barbeyto continued. “We are confident in both governments, but above all, our government, the federal government in Mexico, that they will negotiate very well.”

The uncertainty began when Trump, fresh off his electoral landslide victory over Vice President Kamala Harris, declared on social media in November that he would be imposing 25% tariffs on Mexico and Canada unless their governments met his demands.

In response, Canadian Prime Minister Justin Trudeau immediately reached out to Trump to discuss the situation, and later said he “had a good call” with the president-elect. Trudeau