President Donald Trump could sign an executive order to remove the united States from the Treaty of Free Trade of North America, a move that could have consequences that are widespread in the automotive industry.
Si united States fails to improve the current conditions within the Free Trade agreement of North America, Donald Trump is willing that his country will say goodbye to the trade pact with Canada and Mexico.
If the united States was just pulling out of the NAFTA agreement (NAFTA) the consequences for the industry of the acutomoción could have a regional scope. The change is most significant is probably related to the vehicles that are currently manufactured in Canada and Mexico, which currently come to the u.s. market free of tariffs and that could add up to a 35% tax if the White House continues to move forward with this proposal.
This not only means that the u.s. customers must pay more for the same vehicles, but in addition some of the investments that some brands have made in the region shall now be governed by other rules of the game. Some analysts claim that if this finally happens, the sales of cars in the united States could fall into some 450,000 units.
But for the moment we do not know if this is a play of Donald Trump to to negotiate an improvement in the current conditions if, on the contrary finally you end up fulfilling some of his campaign promises.
Donald Trump lambasting Toyota for its plans to produce the Corolla in Mexico