After Ford and GM, Trump threatens Toyota to make cars in Mexico
After Ford canceled the design of a new factory in Mexico and General Motors was threatened with retaliation for the manufacture of cars in the neighboring country, it was now the turn of the Japanese giant to be targeted by Trump's protectionist statements. "Toyota said it will build a new factory in Baja, Mexico, to produce Corolla cars for the United States." BUILD NONE! Build a factory in the United States or pay an import fee, "said the president-elect through his Twitter account.
The statement is a reaction to the November announcement by Toyota, which commemorated the installation of a $ 1 billion factory in Mexico. However, the branch in question is not located in Baja, on the California border, as Trump pointed out, but in Guanajuato, central Mexico.
In addition, shortly before the White House chief's statement, Toyota President Akio Toyoda said maintaining a good relationship with Trump is key, demonstrating a willingness to work with the Republican. A spokeswoman for the auto giant said the company intends to respond to Trump's tweet.
Free trade agreement is questioned
The president-elect contests the fact that these companies benefit from the North American Free Trade Agreement, an agreement signed between Washington, Mexico and Canada, which permits, under conditions but without customs duties, to export goods produced in Mexico to the United States. The text was one of the main targets during the presidential campaign of Trump, which promised to renegotiate the partnership, which has been in effect since 1994.
But with this threat aimed at Toyota, the Republican goes beyond a limit in his protectionist crusade, for the first time he attacks a foreign group. Shares of the Japanese company fell 0.6% after the Trump tweet.
Wow! Could you imagine having the power to influence a market on a Global Scale, simply by tweeting a message.
I could only imagine the position Toyota is in with a 0.6% stock drop over a tweet.
I am unsure what exactly Trump will do in office, but it is obvious he is making waves all over.
Not over a tweet it is over their actions shipping jobs overseas
Ahh, that makes more sense.
I guess you could blame the tweet because he threatened to tax them if they did it but... I think it is shareholders who are also Americans tired of this economy and losing jobs to lower paid workers in other Countries. Maybe people wouldn't even hear about it without Trumps tweet though even in that case.
Yes, a valid point indeed.
I know that wages here in the US wouldn't be so rough if American Companies hired american workers. The worst thing about it, is that we outsource a lot of work but nothing is really coming into the US for outside work.
Donald trump, it has caused a lot of