Deutsche Bank is out with a new report warning that President Donald Trump’s punitive proposed tariffs on Mexico could “cripple” U.S. automakers who rely on imports of both cars and parts from Mexico to keep costs down:
Deutsche Bank: Trump's Mexico tariffs could 'cripple' U.S. auto industry, raise average price of cars by $1,300 https://t.co/AMWPi4YULB
— Philip Klein (@philipaklein) May 31, 2019
The biggest winners of the tariffs will be Japanese and Korean automakers:
Mexico tariffs would disproportionately hurt US car makers relative to Japanese and Korean companies. Price of GM cars would go up ~$2500, while Toyotas and Hondas would only increase by a few hundred dollars and Hyundais would be barely affected https://t.co/AMWPi4YULB
— Philip Klein (@philipaklein) May 31, 2019
Whoops?
So Trump's brilliant "American first" tariff policy on Mexico would actually make it relatively more attractive for American consumers to purchase foreign cars over American ones. https://t.co/AMWPi4YULB
— Philip Klein (@philipaklein) May 31, 2019
Now, there’s a good chance these tariffs never go into effect anyway.
Mexico’s Foreign Affairs Sec. Marcelo Ebrard tweeted that he’s been in contact with Jared Kushner and Mike Pompeo about Trump’s plan. Translation:
For boarding flight to Washington via Houston, I just got a call with Jared Kushner and Mike Pompeo. Negotiation process starts. I heard interest and respect for President Lopez Obrador’s letter. We move forward.
Por abordar vuelo a Washington vía Houston,acabo de tener llamada con Jared Kushner y con Mike Pompeo. Se inicia proceso de negociación.Escuché interés y respeto a la carta del Presidente López Obrador.Avanzamos. pic.twitter.com/mDTObtoWv0
— Marcelo Ebrard C. (@m_ebrard) May 31, 2019
And he’ll be meeting with them on Wednesday:
I inform you that the summit to resolve the US dispute with our country will be on Wednesday in Washington. Mike POMPEO heads American delegation. This is the Mexican server. There’s a dialogue arrangement. We will be firm and defend the dignity of Mexico.
Les informo que la cumbre para resolver el diferendo de EU con nuestro país será el miércoles en Washington.Mike Pompeo encabeza delegación norteamericana. Este servidor la mexicana.Hay disposición de diálogo. Seremos firmes y defenderemos la dignidad de México.
— Marcelo Ebrard C. (@m_ebrard) May 31, 2019
Tune in next week. . .
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