In the days following the election of Donald Trump (who promised 200% tariffs on Mexico and China), the Mexican executive announced that Toyota still intends to invest around 1.5 billion in the country’s plants. Is the Japanese House challenging the White House?
The arrows that Donald Trump has turned on a commercial level to the whole world, including Europe, but above all to Mexico, threatening duties of 200 percent for all companies that relocate the production of products there which are then sold in the USA, they have literally petrified the new responsible for federal efficiency Elon Musk that beyond the wall that marks the southern border of the United States he wanted to set up a gigafactory identical to the gigantic one in Shanghai. Nothing to do: Tesla will not be made in Mexicoalthough it remains made in China. However, the Japanese Toyota does not face the same problems, although for years it has been playing on equal terms with the indigenous car industries in the competition of the best-selling brands in the States: the Japanese company, in fact, does not intend to give up on Mexico. On the contrary.
TOYOTA’S MEXICAN PLANS
The Ministry of Economy of the Central American country revealed that Toyota will invest in Mexico, and it is no coincidence that it chose to do so in the days when the US is wondering what Donald Trump’s first moves will be as soon as he returns to the House White in early 2025.
Toyota, according to the Mexican government, intends to invest 1.45 billion dollars to produce pick-ups, including the hybrid version of the tacoma (to add insult to injury for the Americans, considering that that is the name of a North American location), in two factories in the states of Baja California and Guanajuato. Mexico’s intention to spread the news as much as possible in a period in which investors, frightened by Trump, are certainly on the run is clear.
WILL TOYOTA HUBS IN MEXICO EXPORT PICK-UPS TO THE USA?
At present, both plants produce cars destined for the USA and in all likelihood Toyota’s plans are to intensify exports from Mexico following the restyling. In short, the Japanese decision seems to want to challenge Donald Trump who has threatened anyone who does not produce in the USA and intends to limit himself to crowding the American market with goods produced elsewhere.
In any case, Toyota’s projects should create 1,600 jobs in Mexico and greater wealth in the country should also curb the illegal immigration so opposed by Trump and Musk.
TESLA’S NAILED AT THE MEXICAN BORDER
As anticipated, Musk himself intended to build a gigafactory in Mexico between the end of 2023 and the following year to serve the Canadian and North American markets but he had to change his plans as soon as Donald Trump began to threaten disproportionate tariffs and his re-election is not a possibility. seemed as improbable as it was initially assumed.
“I think we have to see what happens with the elections. Trump said he will put duties on vehicles produced in Mexico, so it makes no sense to invest a lot in that country now if this really happens” admitted the new head of Efficiency of the tycoon’s team while speaking to his shareholders a few months ago. Who knows if the former startupper’s presence on the presidential board will allow him to try to change Trump’s mind on the issue, given that it would also be in Tesla’s interest to continue to relocate production. Or who knows if the Texan company will obtain aid and tax incentives to make production in the American states equally convenient.
