#Trump also said he would impose new 10% #tariffs on all imports from #China starting on Saturday.

So far, other Asian as well as European trading partners escaped the first round of presidential trade deadlines.

Yet they still have to brace for the unexpected fallout from tariffs slapped on #Mexico & #Canada.

#economy #business #inflation #prices #USpol #geopolitics

Japan alone has >1,300 companies operating in #Mexico, with >½ of them in the #manufacturing sector. Some are #automotive suppliers who shifted production from #China during #Trump’s first term, when he started a trade war w/Beijing. In Nov, #Japan’s #Toyota said it would invest another $1.45B in its 2 Mexico plants.
More factories are on the way. In Oct, the #Taiwan #electronics giant #Foxconn announced plans to build a mega-factory in Mexico to produce #Nvidia chips.

#economy #business #USpol

“It’s ironic, because there was such a response to the first #tariffs to restructure SupplyChains, & now you’re basically punishing the countries that benefited from that adjustment,” said Albert Park, chief economist at the Asian Development Bank.

At #Honda, an exec said there was a feeling of disbelief when #Trump warned of tariffs on goods not just from #Mexico, where Honda operates an auto plant in Celaya, but also from #Canada.

#economy #business #inflation #prices #USpol #geopolitics

#Mexico is the largest exporter of #automotive parts to the #US. #Honda, for instance, produces around 200k vehicles in Mexico, & ships about 160k of those to the US. American carmakers like #GeneralMotors & #Ford Motor, which have major plants in Mexico & #Canada, would be similarly affected by #Trump’s #tariffs.

…Mexico is also home to other major manufacturers that make #aerospace equipment, #electronics, home #appliances & more. It is the largest exporter of #MedicalDevices to the US.