UsaToday reports that Donald Trump and his team of experts are attempting to reenact the North American Free Trade Act (NAFTA). 

After Trump's inauguration, he reported to about his plan to create more jobs by working with America's trade agreements. His advisory board reported that the president desires to do away with the Trans-Pacific Partnership and "renegotiate NAFTA.

In recent years, new manufacturing companies have been located in Mexico. Relocating and rebuilding these plants in America will take years. Trump has also discussed implementing 35% border tax. This tariff would cause the price of cars and trucks to increase drastically, which would cause a decrease in automobile sales.

Ann Arbor, the Center for Automotive Research, composed a study about the effects of the border tax. Their study projects that automakers will move to other countries for manufacturing because of the high taxation, leading to a decrease in an estimated 31,000 jobs.

Sergio Marchionne, the CEO of Fiat Chrysler, believes the tariff will put a halt to production of cars in Mexico. However, Trump has not yet announced his final decision about the border tax. Until then, Marchionne states that he plans to wait and see if any changes are made. If changes are made, manufacturers will have to adjust to the new rules.

Be the first to comment!
Post a Comment