President elect has warned German auto giant BMW that he plans to introduce a border tax on imports from Mexico at up to 35% if BMW goes ahead with its plan to build a new plant in Mexico for exports in to the US. The company insists that the plant is to add to global production and not just for export to the US.
Trump has previous form over threatening companies that intend to export to the US from Mexico. He had previously threatened action against Ford motors if they went through with moving a factory to Mexico from the United States. He has been extremely bullish about dealings with the country, fearing that they take significant amounts of manufacturing jobs out of the US.
Trump has targeted there closest neighbour on several different areas. He has previously suggested that Mexican migration was extremely damaging to the US. He had also suggested that he was going to build a wall to prevent Mexican’s jumping the border. In recent times former Mexican President Vicente Fox has been extremely busy on Twitter essentially heckling President elect Trump. He has become a viral sensation with his swearing retorts against the President elect and his numerous attacks on Mexico.
BMW has insisted that they stand by their decision to open the factory, and that Trump’s assertion over potential taxes will not change their decisions. The company seems fairly convinced that they will be able to work around any potential road bumps. The Mexican government have also insisted that they will try to assist businesses that are due to be affected by any rule that Trump changes.
Trump has insisted that there will be new rules for those businesses, he has taken aim at Chevrolet in the past for the fact that they make the Cruze model in Mexico and are delivering the models to US dealers without paying tax. The moves have helped keep some production in the US. The uncertainty over the future economic model of imports in to the US is a key driver for these companies to extend their existing US facilities rather than relocate to Mexico. How long the threat of taxes will keep this from happening is unknown, but it has certainly been used to dramatic effect thus far.
Joseph is a 34 year old freelance writer from London. He has a wide interest in politics and specialises in the subject. He's also a blog writer in his spare time.