In Mexico, Exporters Already Adjusting To Threats of US Tariffs
Speaker 1: 00:00 The US and Mexico have yet to agree on a plan that would stomp President Donald Trump from implementing tariffs on imports from the neighboring country. In the meantime, corporations and small businesses are bracing themselves for the potential costs from Kj is ease Mexico City bureau. George Valencia has the perspective from one Mexican manufacturer. Speaker 2: 00:21 The company makes straps and buckles. They're based in the central Mexican city of boiler and the president is Gary McKay and Australia president to rock straps here in Mexico. Yes, he's from Australia. He used to run factories in China before starting this one in Mexico last year. He spoke from his factory floor. Right now I'm looking at tables are going to half a dozen people on each one grabbing long bits of webbing and putting bottles on loan and folding them up and giving them the PSOAS and Mckay says one reason he started the factory here was location. This, this one being really close to the USA. Our biggest market is a pretty good spot to me. Another reason he says is that it gives them access to Labor that is relatively cheap and also what La is home to the biggest Volkswagen factory in the Americas, which means a lot of skilled workers around. Speaker 2: 01:07 We're going to get laser engineers. We can get robotic engine is only condition is, it's very handy. The products made by rock straps are brought into the u s by importers and Arizona, Washington state and New York and they have a number of uses, bags, pets and people like LAPD and police department. Tactical response people, Nikki says he and other business owners like him are paying close attention to President Donald Trump's threats to impose tariffs on imports from Mexico. The biggest thing is the uncertainty. It's really difficult to tell the customers what to expect. For example in the case says he had recently promoted his company at a trade show in Florida. One of his talking points was that he was exporting from Mexico, which had a free trade agreement with the US and there we got to ring them up and tell him so that promotional campaign didn't last long. Speaker 2: 01:56 Mckay says this can have a big impact on a company the size of his. He has about 20 employees and says he did about a half a million dollars in sales to the u s over the past year. Starting up a factory in Mexico is very difficult. There is a lot of time, a lot of money, a lot always. But yeah, now we've just got really into production and there we've got this thing hitting us suggests makes you pretty sick and tired for the Mexican economy. This is a big deal. At least 85% of Mexico's exports go to the U S Lend Ramirez. Rusty is an international relations analyst in Mexico City. She says Trump's threats have changed. The political agenda, Speaker 1: 02:32 Tj public opinion is focusing totally in migration and trade. When a week ago we were focusing on health education, health reforms still and other topics of importance of the national agenda. Speaker 2: 02:47 Romita says that part of what makes it difficult for Mexico to negotiate on its domestic immigration policy is that the country has already signed a number of international agreements on migration. Speaker 1: 02:58 Donald Trump taking advantage of that, and it is putting Mexico into a position in which we have to give certain measures and actions to have migrants here in, in the country. Speaker 2: 03:10 Mexican negotiators said in a statement Thursday that Mexico will deploy is 6,000 members of the National Guard to the Guatemala border region. It's unclear whether or not that'll satisfy Trump's demands on keeping migrants from Central America and elsewhere from walking up to the u s until now, Mexican president and rest, Manuel Lopez Obrador has dodged discussing the negotiations. He finally spoke out about them on Thursday morning. It's Pharaoh [inaudible] episode of those says he's optimistic and hopes the two countries will reach an agreement. In the meantime, Trump has said he will implement a 5% tariff on Mexican imports as early as Monday. Jorge Valencia, Kj is news Mexico City. Speaker 3: 03:56 [inaudible].
