The Globe and Mail reports in its Thursday edition that tariffs imposed on vehicles and
parts exported from Mexico
would hike costs to automakers that would range from
$650 (U.S.) to $1,145 (U.S.) and those
costs would be passed on to
consumers, says a new study.
The Globe's Greg Keenan writes that the study, done by Boston
Consulting Group for the Motor
& Equipment Manufacturers Assoc., a trade group
for U.S. auto-parts
makers, examined the impact
tariffs of 20 per cent and 35 per
cent would have on the auto
industry if the United States departs
the North American free-trade
agreement.
The report was issued one day
after Jerry Dias, president of Unifor, called
on U.S. and Canadian officials to
slap "heavy tariffs" on vehicles
exported to the U.S.
and Canada from Mexico as a
means of diverting the flow of
investment from Mexico to the
more northerly members of
NAFTA.
Boston Consulting partner Xavier Mosquet says, "At some point this will hit
the consumer, there's no way
that [automakers] or suppliers
can eat this."
Tariffs are also unlikely to lead
to a shift in assembly plant
investment out of Mexico,
Mr. Mosquet said, because the
U.S. vehicle market has hit a plateau.
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