Donald Trump reacted adversely to news that Toyota is planning to build a new plant in Baja, Mexico to manufacture Corolla cars for the US.
Editor’s Remarks: While Toyota already builds the cars in Mississippi, the news caused President-elect Trump to tweet the following: “Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for US”. He went on to say: “NO WAY! Build plant in US or pay big border tax.” This is not the first firm Trump has gone after for deviating from his path of ‘making America great again.’ He has also attacked Ford, who recently stated they would no longer build a $1.6bn plant in Mexico, as well as GM and others. Only time will tell as to the extent of Trump’s corporate bullying and whether he would actually impose fiscal ramifications.
What to watch: Toyota, Ford, GM, USD/MXN