Since Mexico does not impose tariffs on raw materials, one of the options the veteran company might consider is moving its production across the border. They can then import the finished product back to the US.
The Trump job cuts have arrived
According to the Chamber of Commerce, about 2.6 million people might lose their jobs in line with the new trade policies under President Trump – with Moody’s estimating at least 700,000 jobs to be affected by next summer with the tariff stance alone.
Ironically, the Mid-Continent plant is located in the part of Missouri where 80% votes went to President Trump.
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While there are fears of a trade war, Bank of America Merrill Lynch economist Michelle Meyer feels “The probability of a full-blown trade war is low but the risks are rising.” However, Meyer mentioned his fears that this could lead to massive global trade confrontation pushing the US and the rest of the world “to the brink of a recession.”
Canada, Mexico and the European Union have already retaliated on the tariff impositions by Trump. As the new rates on China come into effect after the first week of July, fears of a possible trade war have started affecting the Wall Street. On Monday, Dow shed at least 300 points – and that’s nine sliding days in a row.