FIRST AIRED: August 3, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

Businesses in Mexico brace for Trump victory

Opening sequence

Opening sequence

Business

Businesses in Mexico brace for Trump victory

0:00
18:24
More Info

COMING UP:Businesses in Mexico brace for Trump victory

×

Transcript

00:00:00
>> They wanna leave, it's fine. But there have to be consequences when they leave.>> Donald Trump's pledge to slap big tariffs on American products made in Mexico, like cars, washing machines, and air conditioners, plays well with his crowds.>> Do you like the idea of taxing the hell out of those air conditioners?
00:00:16
>> But if he makes good on that promise, the American companies that already manufacture goods in Mexico could move more of their operations there not less. Reuters reporter Dave Graham has been speaking with executives of those companies.>> One of the potential solutions that some of the companies in Mexico have been looking at, particularly US companies who'd be hit if they were trying to move stuff back into the US, is to look at the business they do with other parts of the world that does not go to the United States.
00:00:44
And of course some of them have quite a lot of interest in exporting to other parts of the Americas or even further afield. Some of them are thinking that if they are gonna face higher taxes effectively and getting goods back to the United States they would boost their production in Mexico to feed these other markets.
00:01:01
>> Mexico has become a crucial part of operations for many US companies. Since late 2014, the peso has fallen by more than 25% against the dollar, making labor very cheap. In the manufacturing hub, Mexicali, over half the US companies the US companies that dominate the city's industrial parks have expanded capacity in the past year.
00:01:21
>> Ford.>> But a lot of these companies aren't bragging about it. Since back in April Trump called Ford's announcement to build a 1.6 billion dollar plant in San Luis Potosi quote an absolute disgrace.>> And they can have the illegals drive it right across the border, nobody's gonna check them.
00:01:38
>> Well there's some of the investment because of the noise generated by the election campaign has been kept rather under wraps. Some of the companies have not been talking about it in the way they would have done. A lot of the stuff's been going on has been markedly low-key without much fanfare.
00:01:53
>> Most executives Reuter's spoke with, however, are skeptical that even if Trump is elected he'll be able to get some of his more aggressive ideas through Congress. Still, Trump's campaign success has many CEOs fearing the beginning of an era of major uncertainty in cross border trade.