Trump: We will put a 100% tariff on every single car coming across Mexican border

That’s a pretty big comment from Trump. It would go directly against the new NAFTA deal — or USMCA — that he negotiated. In that deal, 75% of the value of a vehicle must come from North America, a certain percentage of employees need to earn at least $16/hour and 70% of the steel and aluminum must come from North America.

The Big 3 all have factories in Mexico as well as most foreign automakers and Tesla has been teasing building a factory there for years.

Now, with Trump you need to take everything with a grain of salt. What’s happening right now is that Chinese manufacturers are building factories in Mexico. He may be looking at ways to put tariffs on those.

This article was written by Adam Button at www.forexlive.com.