U.S. President-elect Donald Trump has called on Toyota Motor over its Mexican-built vehicles, however the biggest risk from a proposed tariff would be for its compatriot Nissan Motor, the biggest automaker operating in the nation.
Trump has targeted U.S. automakers such as General Motors and Ford Motor which produce abroad, alleging them of costing U.S. jobs. On Thursday he alerted Toyota, that it would deal with a “big border tax” if it exported Mexico-built vehicles to the United States market.
However it is Nissan, which would be the bigger victim of any tax penalty. Nissan constructed its first abroad plant in Mexico about 50 years back and now produces over 800,000 cars there, primarily its entry-level Versa and Sentra sedans.
Nissan’s production overshadows that of Toyota, Honda Motor and Mazda Motor in Mexico. It exports approximately half of its output to the United States, where it likewise has production plants.
Automobiles made in Mexico consist of approximately one-quarter of Nissan’s overall U.S. lorry sales, market specialists state, compared to around 30 percent for smaller sized competing Mazda, however less than 10 percent for Toyota and Honda.
Japanese car manufacturers together produced around 1.4 million automobiles in Mexico in the year ended March, almost 40 percent of the nation’s overall output. As per the Japan External Trade Organization, they prepare to increase production to 1.9 million by 2019.
Present production in Mexico is overshadowed by the variety of automobiles they produce in the United States, their single biggest market, where Japan’s leading 3 car manufacturers alone produced around 4 million automobiles in 2015.
Trump has stated he prepares to renegotiate the North American Free Trade Agreement (NAFTA) in between the United States, Canada and Mexico, and actually promised to enforce a 35 percent tariff on vehicles exported to the United States from Mexico.
