President Trump has already started fulfilling his election promise of bringing back jobs and industry back to the American citizens by setting an official policy on the withdrawal from the Trans-Pacific Partnership and the renegotiation of NAFTA.
Shortly after President Trump was sworn in, his administration got down to business and promised to negotiate toughly and fairly, the trade agreements in a move aimed at creating more jobs in the U.S. and consequently make the United States a manufacturing powerhouse. The Whitehouse.gov has listed the above strategy as one of the top policy issue for President Trump’s administration.
The statement clearly states that the strategy starts by the withdrawal from the Trans-Pacific Partnership and ensure that any new trade deals that are signed will be in favor of the American workers. Adding that President Trump is fully committed to renegotiating NAFTA. However, if American partners refuse a renegotiation that will give American workers a fair deal, then President Trump will give notice of the United States intent to withdraw from NAFTA.
In a report issued by the Detroit Free Press, automakers and auto executives have been reluctant to publicly speak out about the adverse consequences of renegotiating or pulling out of the North American Free Trade Agreement since Trump’s comments during the campaign trail had not been made official in the White House policy.
President Trump’s goal is to put American workers and businesses first when it comes to trade, he intends to bring back millions of jobs back to America. Majority of analysts and economists agree with the fact that America lost majority of its jobs to China and the automation of the manufacturing industry than to Mexico.
It’s a well-known fact that NAFTA has greatly contributed to the decline in U.S. manufacturing jobs. However, this has led to massive automotive industry investment in Mexico and the growth a huge supplier network. Its no surprise to find out that Mexico has surpassed Canada in annual vehicle production since nearly every automaker has built new plants in Mexico in recent years.
In a statement made by Fiat Chrysler CEO Sergio Marchionne, the automaker could be forced to halt its production in Mexico due to the 35% border tariff.