Under tariff threat, Mexico less attractive to companies avoiding China trade war [Reuters]
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Source: Reuters
Under tariff threat, Mexico less attractive to companies avoiding China trade war - Reuters 5 Min Read MEXICO CITY, June 7 (Reuters) - A flood of companies eyeing Mexico as a safe haven from the U.S. trade war with China risks evaporating after President Donald Trump last week threatened to unleash tariffs on Mexico too. News of Trump’s tariff plan has battered the Mexican peso and cast doubt over the future ratification of a new North American trade agreement, a treaty overhauled during months of agonizing talks previously demanded by the U.S. president. Just when companies thought that trade deal had made Mexico a tempting manufacturing alternative to China, Washington’s new threats have thrown several off balance again. Take the recent experience of outsourcing firm Tecma Group, which saw a surge in interest from companies mulling a move to Mexico as Trump raised tariffs to 25% on $200 billion of Chinese goods. Tecma, which manages some 75 factories in Mexico, had been approached “
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