Every American auto factory depends on Mexican parts to build its cars or trucks. That's why President Donald Trump's threat to impose tariffs on Mexican imports of up to 25% by October is rattling the US auto industry. The tariffs could raise costs in the United States by tens of billions of dollars in the auto industry alone.Car buyers would probably pay the cost of those tariffs.
"Finished cars and trucks also come into the United States from Mexico — about 2.7 million autos were imported from Mexico last year, worth $52 billion, according to the US Commerce Department. That's nearly a million more autos than came from Japan, the No. 2 source of auto imports. A 25% tariff on all imports from Mexico would add about $28 billion a year to the cost of completed vehicles and parts.
And now American companies will be able to compete, and the production of components can be moved back to this country.
ChrisCuomo BuyAmerican
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