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Trump Says Companies Will Move From Mexico If He Imposes Tariffs

Trump Says Companies Will Move From Mexico If He Imposes Tariffs

(Bloomberg) -- President Donald Trump said that if he imposes tariffs on Mexico, companies will leave that country to avoid paying them and relocate to the U.S.

Trump made the comments on Friday on Twitter, a day after he threatened to impose new tariffs on Mexico unless the country stops the flow of migrants into the U.S.

“In order not to pay Tariffs, if they start rising, companies will leave Mexico, which has taken 30% of our Auto Industry, and come back home to the USA,” Trump wrote.

Trump’s vow to impose tariffs on all Mexican goods over illegal immigration threatened to increase costs for automakers and other manufacturers and left Mexico’s president calling to resolve the issue “with dialogue.”

Mexico is by far the largest source of U.S. auto imports and tariffs on goods from there would increase costs for many major manufacturers.

Trump said on Twitter the tariffs are “about stopping drugs as well as illegals!”

In a subsequent tweet, Trump said that most illegal drugs enter the U.S. through Mexico.

“This has gone on for many years & nothing has been done about it,” Trump wrote. “We have a 100 Billion Dollar Trade Deficit with Mexico. It’s time!”

To contact the reporter on this story: Justin Blum in Washington at jblum4@bloomberg.net

To contact the editors responsible for this story: Alex Wayne at awayne3@bloomberg.net, Justin Blum, Joshua Gallu

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