President-elect Donald Trump has promised to either renegotiate or pull out of what he calls unfair trade deals so American workers and companies can thrive again.
That means pacts like the North America Free Trade Agreement could be scrapped, bad news for auto makers, suppliers and consumers.
But dismantling pacts like the North American Free Trade Agreement could do more harm than good to businesses like the auto industry that rely on free trade.
CCTV America’s May Lee reports from Los Angeles.
Trump's free trade stance worries global automakersThat means pacts like the North America Free President-elect Donald Trump has promised to either renegotiate or pull out of what he calls unfair trade deals so American workers and companies can thrive again. Trade Agreement could be scrapped, bad news for auto makers, suppliers and consumers. CCTV America’s May Lee reports from Los Angeles.
Trump has threatened to get tough on trade partners by imposing tariffs as high as 45 percent on imports, which means cars built with foreign made parts or assembled outside the U.S. will be hit hard.
More Mexican expansion is in the works. Ford will invest $1.6 billion to increase production of small cars, and General Motors intends to invest an additional $5 billion. All the more reason auto giants are reticent when confronted with the possibility that trade deals could implode.
Donald Trump believes resetting trade deals will build a strong economy because tens of thousands of lost jobs will come back, but the reality may be very different.
And one more point to consider. If higher tariffs are imposed on foreign imports, other countries might retaliate, which means higher prices all around.
Jack Perkowski on Trump’s stand on manufacturing
How will President-Elect Trump’s proposals on auto industry impact manufacturers globally? To learn more about this question and Trump’s plans for the auto industry, CCTV America’s Rachelle Akuffo spoke with Jack Perkowski, managing partner for JFP Holdings, Ltd.