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Manufacturing in Mexico: too good for US OEMs to leave?

Despite tariffs, research by Roland Berger suggests Mexico is too cost effective and convenient for US automakers to depart. By Will Girling

At the time of writing, the US imposes a 25% tariff on auto imports from Mexico, with some reductions for US-Mexico-Canada Agreement (USMCA) compliant products. Negotiations are ongoing, but tensions are high: Mexico is threatening countermeasures if 50% tariffs on steel are maintained. The country is a top three exporter of steel, according to the US Department of Commerce. For some, however, tariffs are considered a potent tool for disrupting the status quo and bringing industry home.

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