Wednesday, January 19

Trump viewed Mexico as a threat to his auto industry

Trump viewed Mexico as a threat to his auto industry

Trump viewed Mexico as a threat to his auto industry

Former American President Donald Trump used a report in 2019 to threaten to increase tariffs on imported vehicles in which Mexico was mentioned more than 40 times and points out that the transfer of Research and Development (R&D) centers to that country is a threat to national security.

The report, from Department of Commerce, to which the Efe agency had access and which has several censored parts, mentions Mexico more than 40 times, twice as much as China, 4 times more than Canada and 30 times more than Germany.

The authors used official data from the Mexican Government to indicate that Almost 90 of the 100 main supply companies in the automotive sector operate in the Latin American country, which has allowed the production of elements with high added value to have multiplied in recent years.

R&D leakage

In addition, the authors indicated that Mexico is increasingly chosen by the world’s leading automakers for install Research and Development (R&D) centers and that the US industry “considers the graduates (engineers) in Mexico as qualified for R&D work as those in the United States.”

Thus, the report argued that the transfer of R&D centers to Mexico implies “Loss of specialized training and production knowledge in the United States” This impedes “the ability of US manufacturers to access the skilled labor and advanced technologies” that are key to the United States.

The report defended, for reasons of national security, the imposition of customs duties of between 25% and 35% on imported vehicles, but the Trump Administration refused to publish it despite the fact that the law required the US Government to do so in January 2020.

Military industry

The document also pointed out that the American automobile industry is essential for the development and production of military vehicles in the country and that “the significant” importation of vehicles during the past three decades “has seriously weakened the automobile sector in the United States” due to the reduction in domestic production.

In its conclusions, the Secretary of Commerce determined that “the current quantities and circumstances of imports of automobiles and certain automobile components” such as transmissions, motor axles and electrical components are “weakening” the domestic economy and “threaten to harm national security,” the report added.

Republican Senator Pat Toomey, author of an amendment requiring the delivery of the confidential report, stated in a statement that the rationale for those fees it is “so unjustified that even the authors were too embarrassed to allow it to be published”.

Toomey also criticized the Trump Administration, saying it was “totally unacceptable” for it to break the law and refuse to publish the report.

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