A China-based manufacturing firm I know had decided earlier this year to shift production to Mexico as a way of sidestepping the worsening U.S.-China trade war. Then the White House announced that the United States would impose tariffs of up to 25% on all Mexican imports if the country didn’t crack down on illegal immigration.
Even though those tariffs didn’t go forward, the threat was enough to make the company tear up its plans and start looking for alternatives.
